Estate and Trust

Consolidated services from one team, at one firm.

​Estate planning is not just having a will. It involves arrangements for managing your assets while you are alive and upon your death, while often minimizing the estate tax impact on your family.

Usually estate and trust services involve a team of professionals: Certified Public Accountant (CPA), an attorney, a financial planner or investment advisor, insurance agent and bank trust officer. Jones & Roth offers its clients a unique, in-house Oregon Estate and Trust Services Team that can provide accounting, tax planning, financial planning, investment advice and insurance analysis all under one roof. Our team works closely with your attorney to create a tailored plan for you and your family.

Our services include:

  • Federal and state fiduciary income tax return preparation
  • Federal and state estate tax return preparation
  • Financial statement preparation and related accounting services
  • Estate planning
  • Retirement planning
  • Financial planning
  • Investment advice and management
  • Asset protection
  • Insurance coverage review
  • Business succession planning
  • Business valuation
  • Evaluating buy-sell agreements

Securities offered through 1st Global Capital Corp., Member FINRA, SIPC. Investment Advisory services offered through 1st Global Advisors Inc. We currently have individuals licensed to offer securities in states of AZ, CA, CT, HI, IA, IL, NC, NV, OR TX and WA. This is not an offer to sell securities in any other jurisdiction.

Estate & Trust Team


Robin Mathews, CPA

Robin Mathews, CPA

Partner and Shareholder

Bio

Jamie Zolezzi, CPA

Jamie Zolezzi, CPA

Senior Manager

Bio


Recent News

What You Need to Know About Year-End Charitable Giving in 2017

What You Need to Know About Year-End Charitable Giving in 2017

Charitable giving can be a powerful tax-saving strategy: Donations to qualified charities are generally fully deductible, and you have complete control over when and how much you give. Here are some important considerations to keep in mind this year to ensure you receive the tax benefits you desire.

Delivery date

To be deductible on your 2017 return, a charitable donation must be made by Dec. 31, 2017. According to the IRS, a donation generally is “made” at the time of its “unconditional delivery.” But what does this mean? Is it the date you, for example, write a check or make an online gift via your credit card? Or is it the date the charity actually receives the funds — or perhaps the date of the charity’s acknowledgment of your gift?

The delivery date depends in part on what you donate and how you donate it. Here are a few examples for common donations:

Check. The date you mail it.

Credit card. The date you make the charge.

Pay-by-phone account. The date the financial institution pays the amount.

Stock certificate. The date you mail the properly endorsed stock certificate to the charity.

Qualified charity status

To be deductible, a donation also must be made to a “qualified charity” — one that’s eligible to receive tax-deductible contributions.
The IRS’s online search tool, Exempt Organizations (EO) Select Check, can help you more easily find out whether an organization is eligible to receive tax-deductible charitable contributions. You can access EO Select Check at http://apps.irs.gov/app/eos. Information about organizations eligible to receive deductible contributions is updated monthly.

Potential impact of tax reform

The charitable donation deduction isn’t among the deductions that have been proposed for elimination or reduction under tax reform. In fact, income-based limits on how much can be deducted in a particular year might be expanded, which will benefit higher-income taxpayers who make substantial charitable gifts.

However, for many taxpayers, accelerating into this year donations that they might normally give next year may make sense for a couple of tax-reform-related reasons:

1. If your tax rate goes down for 2018, then 2017 donations will save you more tax because deductions are more powerful when rates are higher.

2. If the standard deduction is raised significantly and many itemized deductions are eliminated or reduced, then it may not make sense for you to itemize deductions in 2018, in which case you wouldn’t benefit from charitable donation deduction next year.

Many additional rules apply to the charitable donation deduction, so please contact us if you have questions about the deductibility of a gift you’ve made or are considering making — or the potential impact of tax reform on your charitable giving plans.

 

© 2017

Potential Tax Reform Impact on Healthcare Practices

Potential Tax Reform Impact on Healthcare Practices

We have been promised all year that tax reform is coming and it looks like that promise will be fulfilled, but there are still steps that have to be taken for that to become a reality.  The House has proposed their plan and the Senate has proposed their own plan, but there are many differences that still need to be reconciled by each party.

We have identified what we think are some of the major differences between the House’s plan and the Senate’s plan and summarized these in the table below.  The table also includes some of the provisions where the House and Senate agree and we will likely see impact to the physicians that we work with.

As we navigate the final steps of tax reform it is important that you are talking with your tax advisor about the potential planning opportunities available to you for 2017.  It is also important that you understand how the above changes could impact your tax liability for 2018.

 

Individual Provisions House Senate Comments
Individual rates Tax rate cuts for individuals and number of brackets reduced to four brackets of: 12%, 25%, 35%, and 39.6%. Seven brackets kept, but rates were cut in for most brackets.  Seven brackets are as follows; 10%, 12%, 22%, 25%, 32%, 35% and 38.5% Substantial rate cuts under each plan, but very different in structure.
Standard deduction Increased to $12,200 (single) and $24,400 (joint), and indexed for inflation. Increased to $12,000 (single) and $24,000 (joint), and indexed for inflation before reverting to current law in 2026. The increased standard deduction will help those that do not itemize, but will likely not benefit those that historically have itemized.
Personal exemption Repeal Repeal until 2026 The loss of personal exemptions is being offset for those in “lower” bracket by the increased standard deduction.
Child credit Increased to $1,600 Increased to $2,000 with higher phase-out threshold and increased refundability until 2026. The increased credit will help those below the AGI threshold.
Alternative minimum tax (AMT) Repeal Retain with a 39% increase in the individual AMT exemption. A repeal of AMT appears good, but many Oregon physicians are in AMT because of high state income taxes.  The potential loss of those deductions (see below) makes this a moot point.
State and local tax deduction Repealed except for trade or business taxes paid at entity level and up to $10,000 in property taxes. Same provision as the House but it expires in 2016. Oregon residents (not in AMT) will be negatively impacted by this provision because of high state income taxes.
Mortgage interest Capped at $500,000 in debt.

Debit incurred or under contract before 11/2/17 would be exempt.

Repeals deduction for interest on up to $100,000 in home equity debt until 2026. Impact still uncertain since differences yet to be reconciled.
Alimony Above-the-line deduction repealed, and recipient no longer included in income. No change to current tax law. The loss of the alimony deduction will create issues with the income equalization of current divorce decrees.
Principle residence Must be principle residence for five of eight years and only use exclusion every five years.  Exclusion phases out above $250,000 for single and $500,000 for joint filers. Same as House without the high-income phase out and reverts to current law in 2026.  Exception for sales in contract before 1/1/18. Home owners will need to hold their homes longer as their personal residence to take advantage of the exclusion.
Athletic seating rights donations Repeal of 80% donation for amounts paid to athletic funds to purchase tickets. Same as House Accelerating the dues into 2017 would be advantageous for taxpayers.

 

Business Provisions House Senate Comments
Alternative minimum tax (AMT) Repeal for C corporations Retain corporate AMT Many small physician practices are exempt from AMT so this is likely moot.
Corporate tax rate Flat 20% rate effective for 2018. Flat 20% rate effective for 2019. See item below for PSC.
Pass-through business rate 25% tax rate on qualifying income (if passive).  For active owners only a portion of PTE income is at 25% rate. Nothing for Senate See item below on Pass-through rate deduction.
Pass-through business deduction Nothing for House 23% deduction for qualifying pass-through income up to certain thresholds. Rather than have a separate tax rate like under the House plan.  The senate has proposed this deduction.
Bonus depreciation 100% for property placed in service after 9/27/17.  Used property qualifies, but real estate does not. Same as House, but with five-year extension: 80% in 2023, 60% in 2024, 40% in 2025, and 20% in 2026.  Real estate is eligible but can forgo in order to preserve interest deduction. This will benefit many small business owners.
Section 179 expensing Increased to $5M for five years with $20M phase-out threshold.  Expands definition for eligible property to include energy efficient HVAC. Increased to $1M for five years with $2.5M phase-out threshold.  Expands definition for eligible property to include nonresidential roofs, HVAC, fire alarm, and security system.  The expansion of additional property will be beneficial as well as the increased limits.
Real Property No provision Reduces recovery period from 39 years for nonresidential real property and 27.5 for residential real rental to 25 years for both. Shorten the recovery period will allow physician owned property to recover their cost more quickly.
Interest expense Net interest expense limited to 30% of taxable income without interest expense or income, NOL, depreciation, amortization, or depletion.  Five-year carryover of unused expense.  Real estate exempt. Net interest expense limited to 30% of taxable income without investment income or loss, interest income or expense, NOLs, and pass-through deductions. This will affect new practice owners with significant debt.  They will potentially lose a portion of their deduction if not utilized in the carryover period.
Work opportunity tax credit Repealed Retained The loss of this credit would hurt employers that hire eligible employees.
Like-kind exchanges Limited to real property. Limited to real property. Would no longer be able to defer the gain on business personal property like cars.
Deduction for meals provided for the convenience of employer Retained Deduction reduced to 50% in2018 and then eliminated altogether in 2026. Companies will lose a portion of meals provided for trainings or company events.
50% deduction for entertainment expenses. Repealed Repealed These expense will be lost.

 

 

Elliott Tracy, CPA is a Healthcare & Dental CPA specializing in practice management, advisory services, and tax & accounting services for medical and dental practices across the U.S.

Potential Tax Reform Impact on Dental Practices

Potential Tax Reform Impact on Dental Practices

We have been promised all year that tax reform is coming and it looks like that promise will be fulfilled, but there are still steps that have to be taken for that to become a reality.  The House has proposed their plan and the Senate has proposed their own plan, but there are many differences that still need to be reconciled by each party.

We have identified what we think are some of the major differences between the House’s plan and the Senate’s plan and summarized these in the table below.  The table also includes some of the provisions where the House and Senate agree and we will likely see impact to the dentists that we work with.

As we navigate the final steps of tax reform it is important that you are talking with your tax advisor about the potential planning opportunities available to you for 2017.  It is also important that you understand how the above changes could impact your tax liability for 2018.

 

Individual Provisions House Senate Comments
Individual rates Tax rate cuts for individuals and number of brackets reduced to four brackets of; 12%, 25%, 35%, and 39.6%. Seven brackets kept, but rates were cut in for most brackets.  Seven brackets are as follows; 10%, 12%, 22%, 25%, 32%, 35% and 38.5% Substantial rate cuts under each plan, but very different in structure.
Standard deduction Increased to $12,200 (single) and $24,400 (joint), and indexed for inflation. Increased to $12,000 (single) and $24,000 (joint), and indexed for inflation before reverting to current law in 2026. The increased standard deduction will help those that do not itemize, but will likely not benefit those that historically have itemized.
Personal exemption Repeal Repeal until 2026 The loss of personal exemptions is being offset for those in “lower” bracket by the increased standard deduction.
Child credit Increased to $1,600 Increased to $2,000 with higher phase-out threshold and increased refundability until 2026. The increased credit will help those below the AGI threshold.
Alternative minimum tax (AMT) Repeal Retain with a 39% increase in the individual AMT exemption. A repeal of AMT appears good, but many Oregon dentists are in AMT because of high state income taxes.  The potential loss of those deductions (see below) makes this a moot point.
State and local tax deduction Repealed except for trade or business taxes paid at entity level and up to $10,000 in property taxes. Same provision as the House but it expires in 2016. Oregon residents (not in AMT) will be negatively impacted by this provision because of high state income taxes.
Mortgage interest Capped at $500,000 in debt.

Debit incurred or under contract before 11/2/17 would be exempt.

Repeals deduction for interest on up to $100,000 in home equity debt until 2026. Impact still uncertain since differences yet to be reconciled.
Alimony Above-the-line deduction repealed, and recipient no longer included in income. No change to current tax law. The loss of the alimony deduction will create issues with the income equalization of current divorce decrees.
Principle residence Must be principle residence for five of eight years and only use exclusion every five years.  Exclusion phases out above $250,000 for single and $500,000 for joint filers. Same as House without the high-income phase out and reverts to current law in 2026.  Exception for sales in contract before 1/1/18. Owners will need to hold their homes longer as a personal residence and will not be able to sell as often.
Athletic seating rights donations Repeal of 80% donation for amounts paid to athletic funds to purchase tickets. Same as House Accelerating the dues into 2017 would be advantageous for taxpayers.

 

Business Provisions House Senate Comments
Alternative minimum tax (AMT) Repeal for C corporations Retain corporate AMT Many small dental practices are exempt from AMT so this is likely moot.
Corporate tax rate Flat 20% rate effective for 2018. Flat 20% rate effective for 2019. See item below for PSC.
Pass-through business rate 25% tax rate on qualifying income (if passive).  For active owners only a portion of PTE income is at 25% rate. Nothing for Senate See item below on Pass-through rate deduction.
Pass-through business deduction Nothing for House 23% deduction for qualifying pass-through income up to certain thresholds. Rather than have a separate tax rate like under the House plan.  The senate has proposed this deduction.
Bonus depreciation 100% for property placed in service after 9/27/17.  Used property qualifies, but real estate does not. Same as House, but with five-year extension: 80% in 2023, 60% in 2024, 40% in 2025, and 20% in 2026.  Real estate is eligible but can forgo in order to preserve interest deduction. This will benefit many small business owners.
Section 179 expensing Increased to $5M for five years with $20M phase-out threshold.  Expands definition for eligible property to include energy efficient HVAC. Increased to $1M for five years with $2.5M phase-out threshold.  Expands definition for eligible property to include nonresidential roofs, HVAC, fire alarm, and security system.  The expansion of additional property will be beneficial as well as the increased limits.
Real Property No provision Reduces recovery period from 39 years for nonresidential real property and 27.5 for residential real rental to 25 years for both. Shortened recovery period will allow dentists owned property to recover their cost more quickly.
Interest expense Net interest expense limited to 30% of taxable income without interest expense or income, NOL, depreciation, amortization, or depletion.  Five-year carryover of unused expense.  Real estate exempt. Net interest expense limited to 30% of taxable income without investment income or loss, interest income or expense, NOLs, and pass-through deductions. This will affect new practice owners with significant debt.  They will potentially lose a portion of their deduction if not utilized in the carryover period.
Work opportunity tax credit Repealed Retained The loss of this credit would hurt employers that hire eligible employees.
Section 199 (DPAD) Repealed for tax years beginning in 2018. Repealed for C corporations for tax years beginning in 2019.  Repealed for all other taxpayers for tax years beginning in 2018. There would no longer be an additional deduction for crowns produced in the office.
Like-kind exchanges Limited to real property. Limited to real property. Would no longer be able to defer the gain on business personal property like cars.
Deduction for meals provided for the convenience of employer Retained Deduction reduced to 50% in2018 and then eliminated altogether in 2026. Companies will lose a portion of meals provided for trainings or company events.
50% deduction for entertainment expenses. Repealed Repealed These expenses will be lost.

 

 

 

Elliott Tracy, CPA is a Healthcare & Dental CPA specializing in practice management, advisory services, and tax & accounting services for medical and dental practices across the U.S.