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While it might seem like a great position to hold a concentrated position in a low-basis stock that has appreciated over time, it poses several challenges related to investment risk and taxes. Here are some charitable options for lowering your risk while doing the most good with your gains, whether that means giving to a worthy cause, gifting to a family member in a lower tax bracket, or both.

When the Tax Cuts and Jobs Act (TCJA) was passed in late 2017, the “sunsetting” of many of the provisions in 2026 seemed far away. Among those of benefit to high-net-worth individuals was the increasing of the gift, estate and generation-skipping transfer tax exemptions to $11.18 million per person ($22.36 million for married couples) for 2018. The tax exemptions are indexed annually for inflation through December 31, 2025. For those who can afford to use the higher exemption, learn what’s at stake and what needs to happen before the exemption is significantly reduced.

While the tax environment has become more complex for businesses, there are opportunities to minimize their tax burden on the state and local level. In this 10-minute interview, attorney Lynn Gandhi of Foley & Lardner’s Tax group joins Brian Lucareli to discuss the impact of state and local taxes such as state income taxes, sales and use taxes, payroll taxes, excise taxes, and withholding taxes. Lynn also shares practical solutions and structures to avoid paying more taxes.

It may seem that there will always be time to address estate planning. However, a unique opportunity to maximize the amount of wealth that can be tax-efficiently passed to heirs will expire at the end of 2025. Furthermore, legislation could curb lifetime exemption limits even sooner. The opportunity is even more pressing because the current market downturn represents an especially advantageous time to optimize your taxable estate before markets eventually recover.

U.S. tax and information reporting obligations have become an increasing concern for international families and their succession planning structures. Missed or late filings can result in steep penalties, even when no tax is due. The Foreign Account Tax Compliance Act (FATCA) is alerting the Internal Revenue Service (IRS) to income and accounts held by U.S. citizens and green card holders (U.S. persons). To help bring delinquent individuals into compliance, the IRS offers streamlined filing compliance programs.

Residents in 43 states pay state income tax, with the highest rate being 13.3%. When combined with the top federal marginal tax rate and the net investment income tax, residents subject to the highest state income tax rate could face a total levy of 54.1% of income. As a result, those residents are interested in finding ways to mitigate the tax. An incomplete gift non-grantor trust (ING trust) could be the answer.

With more business families going global, it’s imperative that family businesses consider the tax implications as well as the business and personal factors when planning a family business transfer. In this report, KPMG offers two case studies on taxing family business transfers and the significant disparities between tax regimes. The report also compares the vastly different tax implications of transferring the family business through gifting during the owner’s lifetime (including on retirement) and through inheritance across 57 countries, territories, and jurisdictions worldwide.

Effective tax planning can accomplish much more than limiting the tax liabilities for the current and future years. With a closer look at the federal state and gift tax exemption levels and other tax areas, there are opportunities to maximize additional savings and achieve your tax planning goals in 2023.

The SECURE 2.0 Act of 2022, signed into law by President Joe Biden on December 29, 2022, makes significant changes to the administration and taxation of retirement plans. It addresses many practical concerns that surfaced after the passage of the original SECURE Act in 2019 and during the pandemic. Some of the key changes, including the rules for surviving spouses and the required minimum distribution rules, are set out here.