Avoid the “Step-Down in Basis” Pitfall | Krilogy Tax Services

A commonly known provision of the tax code is the step-up in basis rule; many taxpayers encounter this when inheriting appreciated assets. A lesser-known and tricky related provision is the step-down rule, which can be a potential hazard causing losses to remain unrealized. This, in turn, leads to possible tax savings disappearing into thin air. As background, the IRS allows…

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Avoid Over-Contributing to These Tax-Advantaged Accounts | Krilogy Tax Services®

Health Savings Accounts (HSAs), 401(k) retirement plans, and Individual Retirement Accounts (IRAs) are popular options for individuals looking to enjoy tax benefits while saving for retirement and health care expenses.  However, like any financial account, there are rules and limits to follow to ensure that you avoid penalties and taxes.  A common mistake individuals make is over-contributing to these accounts,…

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Did You Forget Your Backdoor Roth in 2023?

We’re now into Calendar Year 2024, and perhaps you just realized that you forgot to make your backdoor Roth contribution for 2023 – is there anything you can do? The good news is, yes! Even though December 31st has passed, taxpayers and their spouses have until April 15th, 2024 to contribute to their IRA and classify this contribution as a…

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Free Tax Tips on Social Media – You Get What You Pay For

Social media has become an integral part of our daily lives, so it’s no surprise that people turn to it for advice on a wide range of topics. However, when it comes to tax advice, social media is not the place to go. While it may be tempting to ask for help from online friends or follow the advice of…

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Could You Be Saving on Taxes by Living in a Different State? | August 2023

Could You Be Saving on Taxes by Living in a Different State? As taxpayers grow more affluent or near retirement, many begin to consider moving to a state that does not collect personal income tax.  Perhaps Florida is the state most well known as the “tax free retirement state,” but there are eight states that currently do not have an…

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Successfully Navigating Estimated Payments to a Safe Harbor | May 2023

Another tax season has come and gone, and (hopefully!) you got your return filed on time.  Did you wind up having to write a big check to the government, making you wonder “Why do I still owe taxes?”  We can help answer that question: https://www.krilogy.com/why-do-i-still-owe-taxes/ Or maybe your tax preparer gave you vouchers and instructions to make estimated tax payments…

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Krilogy Financial

2022 Retirement Account Deadlines

The upcoming tax deadline of April 18, 2023, looms large for millions of taxpayers, but it’s also the deadline for a few other things that you may need to know about, some of which can favorably help you with your 2022 tax return. In addition to being the date by which your Form 1040 Individual Tax Return needs to be…

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Roth Conversions in a Bear Market | December 9, 2022

Roth Conversions in a Bear Market 2022 has been a difficult year for investors, but the market decline can present the potential to capitalize on a long-term tax savings plan by converting traditional IRA funds to a Roth IRA. What Is a Roth IRA? Roth IRAs are individual retirement accounts that are set up with contributions from assets on which…

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The IRS Waives Missed RMD Penalty for Certain Required Minimum Distributions

On October 7th, 2022, the IRS released Notice 2022-53 announcing they intend to waive the 50% excise tax on certain required minimum distributions (RMDs) from retirement plans in 2021 and 2022. Listed below is a brief backstory to get you up to speed. Backstory: In December 2019, Congress passed the Setting Every Community Up for Retirement Enhancement Act of 2019…

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Tax Relief for Missouri Flood Victims

The Internal Revenue Service and Missouri Department of Revenue have granted tax relief for victims affected in the severe storms and flooding that began July 25, 2022. Individuals and households affected by the severe storms and flooding qualify for tax relief if the individual resides or has a business located in: The Independent City of St. Louis; Montgomery County; St….

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