The new Pension Protection Act of 2006 is the most sweeping overhaul to U.S. pension laws in more than 30 years. It also contains more than 100 tax provisions affecting tens of millions of taxpayers, including higher plan contribution deductions for employers, permanent IRA enhancements, permanent Roth 401(k)s, automatic 401(k) enrollment, new investment advice guidelines, permanent extension for 529 college plans, new charitable donation rules, tighter controls on exempt organizations, and much more. In a special Tax Briefing, CCH editors provide a quick-read summary of these changes.

 

The family cottage is often looked at as a great source of family harmony, but failing to properly plan for the transition of this type of family property to future generations can lead to the property becoming a source of family division. In a practical and insightful article from the Journal of Retirement Planning, Andrew Lee, J.D., LL.M, explains tax, financial, legal and interpersonal issues and strategies for families intending to hold on to property for the enjoyment of future generations.

 

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Clergy's dual status with regard to the tax rules offers unique planning opportunities, as well as potentially costly pitfalls to the unwary. In a recent article from the Journal of Practical Estate Planning, Laurence Dresner, a financial planner, registered investment advisor and tax preparer, explains the special tax rules that apply to clergy and how proper planning can save tax dollars and provide peace of mind for the clergy client and their family members.

 

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The ownership of a partnership interest by a trust often involves unique tax considerations. Historically, fiduciaries have often been reluctant to make such investments and instead have taken safer investment paths. But, in today's investment environment, more trusts are considering alternative investments. In a 12-page article from the Journal of Passthrough Entities, David R. Nave discusses the unique tax considerations (the good, the bad and the ugly) to a trust investing in alternative investments through partnerships.

 

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There are a number of "red flags" that can indicate to tax practitioners that they may have a problem client. In the latest issue of TAXES: The Tax Magazine, Martha Doran, Ph.D., CPA; G.E. Whittenburg, Ph.D., CPA, EA; and William Raabe, Ph.D., CPA, show you 10 signs that an existing or potential client might cause you problems. These indicators can serve as a set of tools to use in an on-going analysis of clients, so you can determine where trouble may be brewing before it gets out of hand.

 

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