The Kernutt Stokes Advisor

Estate Planning Essentials You Need to Revisit Due to the New Tax Law

Estate planning is never done. Just like a piece of real estate, it needs periodic maintenance and care to make sure it’s in good shape when you need it most. Provisions in the newly passed GOP tax plan mean it’s time to revisit a handful of key areas of your estate plan. Below we discuss the five areas you should…

Changes to Hardship Distribution Rules from Retirement Plans

By Dean Huber In February of 2018, Congress passed a budget bill intended to keep the government funded and waive the statutory debt limit.  That bill also included some meaningful changes to rules governing hardship withdrawals from retirement plans. Hardship Distributions under Current Regulations Under current IRS regulations, a hardship distribution can made from an employee’s elective deferral contributions (typically…

Stock Market: Volatility Returns—Finally

After months of warnings from Wall Street that the market’s extraordinarily long bull run could not last forever, the inevitable happened. Volatility returned to U.S. markets in a major way in February. The precipitous falls that happened on Feb. 2 and 5 were all the more shocking to investors because the market trend for many months had been almost constantly…

Streamline and Save with New Tax Accounting Options

By Benton Collins, CPA Taxpayers will be hard pressed to find any of the often promised simplification when looking through the business provisions of the Tax Cuts and Jobs Act.  There are, however, a few bright spots in the bill that afford taxpayers the ability to streamline their tax accounting processes while also reducing taxes due. Accounting Methods For tax…

Cryptocurrency Tax Essentials

Cryptocurrency is hot right now. As it emerges as an asset class of its own, many people are still confused about how to treat it for federal income tax purposes. In response, the IRS issued guidance back in 2014 that treats virtual currencies that are convertible to cash as a capital asset—but it’s not as simple as it appears. Taxable…

2018 Tax Reform Introduces Qualified Business Income and Related Deduction

By Brent Laird, CPA and John Mlynczyk, CPA Qualified Business Income (QBI) is a new tax concept introduced with 2018 tax reform.   Many taxpayers are eagerly asking questions about QBI because of the related tax deduction (up to 20%).  This provision allows taxpayers who are organized as sole proprietors, single member LLCs, partners in a partnership (including LLCs taxed as…