2019 Year-End Tax Guide

THE MARCUM 2019 YEAR-END TAX GUIDE | www.marcumllp.com

If approved by the Senate and signed into law, the PRIDE Act could result in over $60 million in tax refunds.

interest on the first

substantially more, has significant medical expenses, or is eligible for qualifying child/dependent care or adoption tax credits. It is advisable to ask your accountant to forecast your taxes under both scenarios. n Estate Planning – Don’t forget to review your beneficiary designations! Is your will up-to-date? Have you named guardians for your minor children? Who is your healthcare proxy and power of attorney agent in the event you are incapacitated and unable to make your own decisions? Does your living will make clear your intentions in the event of medical incapacitation? Should you take advantage of the current federal lifetime gift exemption of $11.4 million? It is a good idea to review your existing estate plan and consider making annual gifts before the year-end.

$750,000 of the mortgage ( deceased from

$1,000,000 for mortgages secured before that date). Make

sure to itemize your taxes, rather than taking the standard deduction, and look out for Form 1098 from your mortgage lender. n Cohabitation Agreements and Prenups – Couples cohabitating, whether married or unmarried, should formalize a legal agreement to protect either partner’s real estate or other assets. Entering into a Cohabitation Agreement or Prenuptial Agreement can protect the interests of both parties, avoid future conflicts, and properly distribute the property in the event of a break- up or death. n Love, Marriage… and Taxes? Newlywed same-sex couples across the U.S. are befuddled when it comes to choosing whether to file their taxes as ”married filing jointly” or ”married filing separate.” Much of the confusion comes from the infamous “marriage penalty” tax, where combining incomes leads to a higher tax bracket and disqualifies certain deductions and credits. Filing joint or separate depends on each couple’s particular situation, including whether one spouse earns

What’s Important?

In the midst of a proposed tax bill specifically aiming to achieve tax equity for modern

couples and families, and monumental court decisions,

compounded by the uncertainty of the upcoming 2020 elections, some planning tips remain important for modern families in the current environment: n The Mortgage Interest Deduction – Two unmarried individuals filing separately (same-sex or opposite-sex) who own property together and pay the mortgage together can continue to reduce their taxable incomes by claiming the mortgage interest deduction on the same residence. For qualified loans secured after December 15, 2017, both individuals can deduct the

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