Petrocelli Blog

Taxation of Entities

Posted by Petrocelli Financial at 1:40pm on November 16, 2018

Certain tax issues arise when distributing assets, including cash from a business. The type of entity the business is organized as largely determines what the tax consequences will be. C corporations, S corporations, partnerships, and sole proprietorships each have certain business advantages and disadvantages and are taxed differently. A limited liability company (LLC) can elect whether it will be taxed as a C corporation, S corporation, partnership, or, if it has only one member, a sole proprietorship. A sole proprietorship is disregarded as an entity for tax purposes, and all property of the business is owned by the sole proprietor.

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Domestic Asset Protection Trust

Posted by Petrocelli Financial at 10:20am on October 28, 2018

A Domestic Asset Protection Trust (DAPT) is an irrevocable trust created by the grantor in which the grantor is a permissible beneficiary. Normally, if a trust is “self-settled,” the grantor’s creditors are able to access trust assets. However, seventeen states have enacted laws in varying forms that allow a grantor to be a beneficiary of a discretionary trust he/she creates, and to varying degrees the assets are protected from creditors.

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Charitable Gifting - Overview & Tax Implications

Posted by Petrocelli Financial at 11:40am on September 3, 2018

The desire to assist a charitable organization must be a primary motive for making a gift; if no charitable inclination exists, charitable giving is difficult to justify. Alternatively, if a charitable motive exists, the tax laws provide various methods and incentives to encourage the donor’s goodwill. The following summarizes the general rules applicable to charitable giving, including a discussion of some common strategies used.

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Using the 1040 to Find Planning Opportunities

Posted by Petrocelli Financial at 7:05am on August 8, 2018

Pre-retirement. For most taxpayers, the best way to reduce current income is to establish and fund a qualified retirement plan or IRA. After deductible retirement plan contributions have been maximized, the next best thing from an investment standpoint is to find ways to defer investment income. Roth contributions may be appropriate where a current tax deduction is not as important as future tax-free income.

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Tax-Advantaged Education Funding

Posted by Petrocelli Financial at 10:45am on July 19, 2018

Saving for college education can be an intimidating undertaking for many parents who may be inexperienced with tax laws, and unsure how to balance their own financial goals, such as saving for retirement and the financial needs of their children. There are many options available to finance a child’s education, and which one or more options to choose requires consideration of many important factors.

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457 Plans-Deferred Compensation

Posted by Petrocelli Financial at 1:05pm on June 6, 2018

Section 457 of the Tax Code provides the rules that govern all NQDC plans sponsored by “eligible employers.” The term “eligible employer” is defined to include states, their instrumentalities (e.g. schools, police departments, etc.) and tax-exempt organizations, but does not include “the federal government or any agency or instrumentality thereof.” A plan sponsored by a state or local government entity does not have to meet a specific ERISA exemption.

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Using a Business to Fund Life Insurance

Posted by Petrocelli Financial at 5:45pm on April 23, 2018

For owners, owner-employees, and non-owner employees, personal insurance may be funded through the business a number of different ways. Cash value life insurance, in particular, is frequently employed due to the fact that it can provide long-term insurance protection for one’s family and estate planning needs, as well as act as a tax-efficient source of retirement accumulation funds. In situations where the business retains ownership of the policy, cash values can provide liquidity for certain business needs, while insurance protection guards against unforeseen events, such as loss of a key employee.

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New York Life Agent Robert Petrocelli Named Agent of the Year

Posted by Petrocelli Financial at 9:45am on February 21, 2018

Robert Petrocelli from the Manhattan General Office of New York Life, an agent since 1979, has received the Agent of the Year Award for 2017. This award recognizes the agent who has achieved the top production commissions among all agents at the company’s Manhattan General Office within a calendar year.

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2017 and 2018 Income and Payroll Tax Rates

Posted by Petrocelli Financial at 2:10pm on February 5, 2018

The 2017 and 2018 income and payroll tax rates.

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Sales Strategies: Bob Petrocelli, New York Life Insurance Company

Posted by Petrocelli Financial at 3:55pm on April 6, 2017

Veteran insurance broker Bob Petrocelli built his business the old-fashioned way: He earned it, one cold call at a time. Upon joining New York Life as a 24-year-old newbie in 1979, Petrocelli picked up the phonebook and started dialing—or dropping in on—any business that seemed successful. “I would walk right in and ask to speak to the owner,” recalls Petrocelli, who grew up in Larchmont and now lives in Rye. “It wasn’t easy, but I was doggedly determined.”

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