Since the Tax Cuts and Jobs Act reduced the top federal corporate income tax rate to 21%, an increasing number of business owners are contemplating establishing their businesses as C corporations or switching their pass-through entities to C corporation status. However, entity choice is a complex decision that involves consideration of several financial, tax and legal factors. This article details one factor that a closely held C corporation shouldn’t overlook: potential liability for the personal holding company (PHC) tax. A sidebar explains the accumulated earnings tax (AET).

A variety of estate planning strategies require having accurate valuations of assets. Indeed, the tax implications of these strategies depend on the fair market value of one’s assets when they’re transferred. The values of many assets may be temporarily depressed because of the COVID-19 pandemic. This article explains why now may be an ideal time to gift them, either directly to family members or to irrevocable trusts. Hiring a qualified valuation expert is essential to updating one’s estate plan for this limited-time opportunity.

For parents faced with the soaring cost of higher education, a scholarship can provide welcome financial relief. Most parents assume that scholarships are tax-free, but that’s not always the case. This article explains that only specific items under a scholarship are tax-free.

These brief tips explain the specifics of when an estate’s executor can defer the payment of estate taxes for up to 14 years; detail the ins and outs of using alternative IRA investments; and discuss the fact that for 2022, the annual gift tax exclusion was increased by $1,000 to $16,000.