Can a Trust Help You Save on State Income Taxes?
Of course, when it comes to lowering taxes almost all taxpayers first and foremost focus on taxes at the federal level. There are of course many ways to save on federal income taxes and the majority of taxes we all pay go to the federal government. So it makes sense that most taxpayers put the lion’s share of their tax-saving efforts towards their federal tax bill. However, depending on which state you live in you could save a nice chunk on your state income tax as well.
There is a certain tax-saving strategy that has been growing in popularity the past few years among the wealthy. They are using trusts to help reduce their exposure to state income tax rates. Incomplete gift non-grantor trusts (ING trusts) can help transfer the tax exposure of those who live in high-tax states like California to a state with no income tax like Texas, Florida or Nevada.
Many of the nation’s wealthy families and individuals who have been using this ING trust strategy, which has grown in popularity over the last 10 years, are reaping the rewards. That’s because ING trusts can help the wealthy lower the state income tax at the trust level. This is especially true if they are nearing a substantial gain.
However, it’s important for anyone setting up an ING trust to do it before there is any intent, or letter or sales discussion that would lead to a given gain. You don’t want it to look like you are setting up the trust simply to avoid taxes. For more information on ING trusts contact GROCO.
http://www.cnbc.com/2016/08/02/how-the-wealthy-use-ing-trusts-to-slash-the-state-income-tax-rate-they-pay.html
How Some Big Companies Are Maximizing Their Tax Benefit
How Some Big Companies Are Maximizing Their Tax Benefit There’s no question that the IRS is always looking for ways to get every penny they can from the nation’s taxpayers, whether they be individuals or businesses. On the other hand, many are also doing whatever they can to pay as little as possible, some, even…
Federal Government Still Facing Huge Deficit
Federal Government Still Facing Huge Deficit Does it seem like no matter how much money the federal government collects in tax revenue, they will still never have enough? For a lot of people the, answer is a resounding “yes.” The country’s Monthly Treasury Statement lends even more credence to that belief. What does the Treasury…
The IRS is Not a Bully – You can poke a bully in the nose.
The IRS is Not a Bully You can poke a bully in the nose. This is the third installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in ways its founders never intended, until it’s…
Could You Pay More to Drink Soda in Berkeley?
Could You Pay More to Drink Soda in Berkeley? We all know that obesity is a problem in our country. Activists and other interested parties continue to work on ways to help curb this growing problem. Indeed, obesity is neither good for individuals or for our country. However, would creating a new tax to help…