As Estate Basis Deadline Looms, Executors’ To-Do List Spirals

To do listUpdate: Since this blog post was published, the IRS extended the due date for Form 8971 basis reporting from Feb. 29 to March 31. For more informaiton, see Notice 2016-19.

Who thinks being an executor (or trustee) of an estate is a glorified and envied position? Have you always dreamed of being an executor and having that wonderful title – and I guess a few fees?  Have you ever served as an executor or trustee and wished to never be in that role again? 

In case you didn’t know it already, executors have many duties and responsibilities, including:

  • Setting up a bank account for incoming funds and paying any ongoing bills;
  • Maintaining property until it can be distributed or sold, and then distributing assets and disposing of other property;
  • Dealing with the probate court – filing the will and an inventory of the estate’s assets with the probate court, and representing the estate in court; and
  • Dealing with liabilities and taxes – providing notice to creditors, paying the estate’s debts and taxes, and, starting at the end of February, preparing and filing estate basis statements with the IRS and beneficiaries.

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Young Love Birds: Take Heed of Old Marrieds on Valentine’s Day

How to Celebrate Love While Staying on Budget

Valentine's day

This year, Americans will spend an estimated $17 billion on Valentine’s Day gifts for significant others, family members, and pets. (Don’t laugh—Americans spent more than $700 million on their pets last Valentine’s Day.) According to the National Retail Federation, the average person spends $142.31 on the day of love. Less likely to spend that much? Those married or coupled for more than five years. Whether they’ve lost that loving feeling or they’ve wised up about inflated prices on Valentine’s Day, young people can learn a thing or two from long marrieds and save a few bucks.

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Absurd Tax Break Requests: Darth Vader and Other "Clients" Weigh In

Darth Vader‘Tis the season that tax practitioners must break it to clients that no, you can't write off that trip to the Bahamas as a medical expense (yes, we understand it reduced your stress), claim the Golden Retriever as a dependent or tell the IRS that Botox use is a legitimate business expense because it helps you sell more homes. To put this annual ritual of wishful thinking in perspective, perhaps it would help to consider what types of tax breaks some of our most famous characters in film, TV and literature would try to claim.

Below are excerpts from focus group interviews with these characters talking about the tax breaks to which they feel that they are entitled. It seems as if they didn't all get along, and maybe it had something to do with that good versus evil thing. Or maybe it was the "but my tax break makes more sense" philosophy that can infect anyone, even the good guys.

Focus Group 1

Facilitator: Thank you all for coming here today to share insights on how the tax code could be improved and made fairer for you. Our group includes Frank Underwood, from “House of Cards,” Sheldon Cooper, star of “Big Bang Theory”, Superman, and Cruella de Vil, of “101 Dalmatians” fame. President Underwood, we'll start with you:

Frank Underwood: Thank you, it's a pleasure to be here. I think with so many people needing help, let's eliminate any provisions that benefit people like Jackie Sharp. She's the Assistant House Minority Whip and married to a surgeon – now why would they need a tax break? You really need to take a look at what she's doing. And, I think, perhaps, I should get a deduction just for being me. Maybe even named after me.

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Estate Planning for the 99 Percent

Estate planningThe CPA financial planner has a new challenge: the majority of our clients’ estates will not be subject to the federal estate tax when death occurs. If this is true, then how do we help them plan for the future, as well as convince them that planning is still important and necessary?

I call this the “new reality” in financial and estate planning. In 2015, the applicable exclusion from the federal gift and estate tax was $5.43 million, indexed annually for inflation, and the 2015 applicable exclusion from the generation-skipping transfer tax (GST) was also $5.43 million. These numbers are now adjusted to $5.45 million for 2016. Clients whose estates fall below this threshold make up 99 percent of the clients we work with in our practices.

However, we can no longer say, “I will plan your estate and save you taxes.” With estate tax savings almost a non-issue, we must adjust, motivating the client to focus on non-transfer tax and income tax aspects of planning that have a large impact on their lives.

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What Do Super Bowl Commercials and CPA Marketing Have in Common?


Super bowlI don’t know about you, but my favorite part of the Super Bowl isn’t the first kickoff or the half-time show, it’s the commercials. They are known as being some of the best, and definitely the most expensive, in the industry. In fact, thirty second spots for Super Bowl 50 have sold for as much as $5 million apiece. Companies spend months developing commercials that will capture the audience’s attention during the game and be remembered long after the last touchdown. Brand recognition is key. However, what good is it if the viewer has a good laugh but can’t remember the product being promoted? This year’s ads are rumored to feature the likes of Christopher Walken, Alec Baldwin and Amy Schumer. Given that the Super Bowl is the most watched television event each year, it is no wonder that companies like Amazon, Budweiser and Doritos return with commercials time and time again.

The Super Bowl advertising phenomenon got me thinking about CPA marketing. Although CPA firms do not often have $5 million to spend on a thirty second commercial, there are several techniques firms can implement to raise awareness of the services they provide. In order to learn more about CPA marketing efforts, I spoke with two experts: Kari Schott from Inovautus Consulting and Brian Swanson from FlashPoint Marketing. Below are some tips on how to enhance your firm’s branding and marketing.

Personalized messaging is key. Some of the best Super Bowl commercials leave the viewer feeling as if they are being spoken to directly. Research has found that communicating 1:1 is more effective than communicating 1 to many. For CPAs, this might mean creating ads that speak to a specific audience, such as those placed in an industry association publication, and having personalized messages designed exclusively for that audience.

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