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By Nathan Vinson, Partner
English, Lucas, Priest and Owsley LLP
Tax law changes in 2018 were huge at both the state and national level. For this blog post, we’re parsing through the changes to the law that require sales tax to be collected on some services and “luxuries,” which was not required in the past.
Each year, the Treasury Department examines the cost of living in the U.S. and adjusts limitations for retirement plans and many other similar items that affect taxpayers throughout the U.S. As has happened previously, the Treasury raised the limits for contributions to pensions and other retirement plans such as 401(k)s, 403(b)s and most 457 plans. All of this helps today’s workers save for retirement with pre-tax dollars, which is a tremendous benefit.
Our tax code requires the Secretary of the Treasury to make this adjustment.
The biggest news is that the contribution limit to employer-sponsored retirement plans, such as the above-mentioned 401(k)s, etc., has gone from $18,000 for calendar 2017 to $18,500 for calendar 2018. If you were bumping up against this limit in 2017, you can now adjust and put in just a little bit more, which is always good news.
By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP
We’ve written previously about gambling taxes, highlighting this issue mainly because of the affection Kentucky has for horse racing. And as you well know, we’re in the midst of horse racing season. Keeneland had its spring meet, and Churchill Downs is now open for the season, with the Kentucky Derby set for May 7. This will be followed by the Preakness in Baltimore and the Belmont Stakes in New York, and the Breeder’s Cup in November in California.
Lots of us love to put a little dough (or a lot!) down on a horse at the track. There was some talk earlier this year of lowering the threshold at which tracks were required to report winnings to the IRS, but that never moved forward, so far as we can tell.
In our last post, we discussed how divorce affects an estate plan. A thorough review of all estate documents is critical post-divorce to ensure you’ve covered every conceivable scenario and changed every document necessary. Allowing an attorney to do that review for you is always in your best interest, as attorneys have a keen eye for details and wording that may escape even a close reader who does not have legal training.
Taking this matter one step backwards, though, we’re examining annulment versus divorce in this post. While both lead to the same conclusion – you’re no longer married – these two scenarios have very different consequences when it comes time to pay taxes.
Both parties may file as married at tax time if they were still legally married at the end of the calendar year. Options include filing a joint tax return, as many married couples do, or checking the married but filing separately box.
Having a child can be exciting (and stressful). Probably the last thing you might think to do when having a child is to update an estate plan, but it’s absolutely necessary. Here are 6 things to consider when you have a child.
Many people collect all kinds of things, and these collections come to hold tremendous sentimental and in some cases monetary value. As people age, they begin to think about who they would like to have certain items or entire collections, and sometimes, bold relatives or friends suggest they’d like to receive something special to remember you by. Gifts and promises of gifts are also made to honor a special relationship.
These type of collections can cause significant arguments after you are deceased. The best way to avoid such disputes is to clearly specify in writing exactly who is to receive what items. Verbally telling a relative or friend what you would like for them to have upon their death, and giving away significant items while you’re still living, causes confusion and prompts some to get greedy.
It’s the last thing anybody wants after they’re gone.
Kentucky Law Blog