Monthly Archives: August 2012

2012 may be the last year to use tax-free ESA funds for precollege expenses

Coverdell Education Savings Accounts (ESAs), like 529 savings plans, offer a tax-smart way to fund education expenses: Contributions aren’t deductible for federal purposes, but plan assets can grow tax-deferred Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes and may […]


Turning a business trip into a vacation

Bringing family or friends along on a business trip and extending your stay can be an excellent way to fund a portion of your vacation costs and save taxes. But if you’re not careful, you could lose the tax benefits. Generally, if the primary purpose of your trip is business, then expenses directly attributable to […]


Now’s the time for giving

For 2012, the gift and estate tax exemption is $5.12 million and the maximum gift and estate tax rate is 35%. Absent additional legislation, for 2013 the exemption will drop to $1 million and the top tax rate will increase to 55%. It’s difficult to predict what Congress will do between now and then, so […]


Crop Insurance Strategies for 2012

With the near record drought facing the United States during this summer of 2012, there will be large payouts of crop insurance proceeds. We are writing to inform you of the special tax election and strategies related to any crop insurance proceeds that you may collect for your 2012 crop. Normally, crop insurance proceeds are […]