Stage Law Firm LLP and the Warwick office of Donohue, O’Connell & Riley PLLC Combine to Form Stage & Donohue, PLLC
Please be aware that the information contained in this site is not intended to be legal advice and is not a substitute for consultation with legal counsel. You will need to consult with a qualified attorney for advice regarding your individual situation. Please also understand that contact with Donohue, O’Connell & Riley via calls, letters and e-mail does not create an attorney-client relationship. Firm representation must be confirmed in an engagement letter.
Jurisdiction Selection – Residency vs. Domicile
For those who consider two or more states to be “home,” it is important to understand the legal distinctions between residency and domicile, and the opportunity for tax savings based on where you spend your time.
Residency controls for Income Tax Purposes
The IRS allows you to choose your state of residency as long as you do not spend 183 days a year in one state. In other words, its where you aren’t, not where you are, that controls residency. This is strategic since residency controls for income tax purposes.
Domicile controls for Estate Tax Purposes
Domicile is very important for estate tax planning, and it is vital factor in order to preserve as much of your wealth as possible. Where you spend your last days can have a drastic effect on your family’s inheritance since domicile controls for estate tax purposes.
How a beloved Dog earned his bone
In February 2017, the CEO of Match.com argued in the State of New York tax court that he was a new resident of Texas after having moved there, and therefore a non-resident of New York.
New York claimed that he still owed state taxes. The CEO claimed that he did not.
While the CEO had factors showing that he had ties to both states, the deciding factor came down to his most beloved possession – his Dog – having moved to Texas. Based on this, the court found that he (and his Dog) were Texas residents and therefore was not responsible for New York state taxes. (In re Gregory Blatt 2017)
There’s something for everyone in the new tax legislation
The Tax Cuts and Jobs Act (TCJA) impacts virtually all taxpayers – individuals, corporations, partnerships and other “pass-through” business entities, estates, and even tax-exempt organizations. Our goal is to cut through the hype and explain how our clients can benefit from these changes.
Business owners will benefit from a permanent 14% reduction in the corporate tax rate, from 35% down to 21%.
Self-employed taxpayers will benefit from the new 20% pass-through
deduction for qualified business income from a partnership, S corporation or sole proprietorship.
The gift/estate/generation-skipping transfer (GST) tax exemptions have been doubled to $11.2 million per individual. Now, a married couple will not pay any federal estate tax unless their estate exceeds $22.4M. An individual can transfer up to
$11.2 million before paying the 40% GST tax and a pair of grandparents can gift over $22.4 million to their grandchildren tax-free.
Individual tax brackets and tax rates will change for most taxpayers. In comparison to previous tax brackets and tax rates, the new rates are slightly lower and the brackets are slightly broader.
Our firm takes pride in our personalized approach to client service.
Please contact us so we can understand your unique circumstances & family dynamics to tailor our advice to best meet your current and long-term needs.
10%, 15%, 25%, 28%, 33%, 35%, 39.6%
New rates under the TCJA
10%, 12%, 22%, 24%, 32%, 35%, 37%
The standard personal deductions have nearly doubled:
$18,000 (head of household)
$24,000 (married filing jointly)
Prior to this reform, about 30% of taxpayers itemized deductions on Schedule A, instead of taking the standard deduction associated with their filing status. Many of these taxpayers will now claim the higher standard deduction and therefore will not need to file Schedule A.
As always, gifting to charitable organizations can be a great way to lower one’s taxable estate, with the added benefit helping the community and preserving your legacy. The deduction for charitable contributions has been expanded so that taxpayers may contribute up to 60% of their Adjusted Gross Income.
Donohue, O’Connell & Riley is celebrating two important milestones in 2018!
Celebrating the 50th Anniversary
Attorneys James Riley & Thomas O’Connell have been advising families in the Pearl River area since 1978. Over the years, their legal work has been based on their deep & sincere desire to help people. Their practice focuses on Estate Planning & Probate and Elder Law and they have attained the highest ratings for legal ability and ethical standards.
Celebrating the 10th Anniversary
In 2008, Attorney Joseph Donohue established his practice in Warwick, NY. Since that time, he has grown the firm organically and through acquisition. He has advised hundreds of clients on how to structure their personal affairs and businesses in order to minimize taxes and assure the smooth transition of wealth between generations. Joe’s practice is multi-jurisdictional in nature, and he regularly advises clients with interests across the US as well as abroad.
Attorney Kristin Canty joined the firm in 2015 and became an equity partner in the firm in 2017. Kristin is licensed in both NY and NJ and specializes in Estate Planning, Elder Law & Estate Administration for clients across the Lower Hudson Valley.