July 2018 Roundup for Professional Advisors

Professional Advisor discusses cryptocurrency
Many cryptocurrency owners are wondering how their digital currency will be taxed if they transfer it and whether charitable solutions exist.

In our roundup for professional advisors, we explore cryptocurrency, the new tax return Form 1040, charitable remainder unitrusts and more. Read below to stay in-the-know on industry news.

Roundup for Advisors

Personal Planner: Helping Children Tomorrow
Mike and Kristi retired at age 65. They have good retirement income, a home that is paid for, good savings and own an undeveloped waterfront lot. Recently, Mike received a very good offer from a person who would like to purchase the waterfront lot. After receiving the offer, Mike and Kristi contacted their attorney, Steve, to discuss the best way to maximize benefits for them, their children and their favorite charity.

Washington News: IRS Summertime Tax Tips
In IR 2018-149, the Service highlighted tax tips for the summer season. While most taxpayers are understandably thinking about barbeques and summer vacations, the IRS offered seven summertime suggestions that may affect taxpayers.

Case of the Week: No Marital Deduction Needed
Keith and Karen have owned a parcel of undeveloped land since 1979, which has significantly appreciated in value. They learned about the concept of funding a lifetime charitable remainder unitrust with their undeveloped real estate and that they could replace the asset by purchasing insurance through a life insurance trust. But, due to their health history, they may not qualify for life insurance. Since the replacement insurance idea is not available to Keith and Karen, is there some other method to transfer value to the children and provide for charity?

Article of the Month: IRS Tax Treatment of Cryptocurrency
Cryptocurrency is a form of digital virtual currency which has grown in prominence, as its most popular variant, Bitcoin, has exploded in value in recent years. With increased popularity comes increased curiosity to the tax treatment of cryptocurrency. Many cryptocurrency owners have held onto it for many years, amassing enormous growth. They now wonder how their digital currency will be taxed if they transfer it and whether charitable solutions exist.

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