GOPIO-CT holds expert panel on tax planning

Stamford, CT:  The Connecticut chapter of GOPIO organized a virtual session on Dec. 4 to educate Indian Americans on 2021 tax reform, tax planning, international taxes, estate & gift tax and retirement plans.

Cecil Nazareth, partner with Nazareth CAs & CPAs, talked about international taxes with particular focus on IRS enforcement, Biden’s proposed tax plan and year-end tax planning. He advised tax filers to avoid “red flags” that could potentially lead to scrutiny. Under the Biden administration, Nazareth stated, “Chances of tax cut is greater for lower and middle class Americans, with the tax rate going up for those earning over $400,000.” He foresees “New credit for people providing long term care to relatives with incentive to offer more retirement savings.” He suggested small businesses to “Apply for PPP loan forgiveness NOW” while cautioning that “expenses are not deductible if loan is forgiven.”

Michael Markhoff, a partner at Danziger & Markhoff LLP, spoke about Estate, Gift taxes and Trust Options for Children, while educating the audience on “changes you should consider to your estate plan in 2021 due to the election; Planning to minimize state estate taxes; and Trust options for children.”

He said the new Administration under Biden is likely to lower the exemption, resulting in lower returns for people with higher income. He suggested to “make gifts before the end of the year” and highlighted the options for making gifts from one person to another within the family to avoid higher taxes. Suggesting that Life Insurance is good planning and will help pay for estate plans, he recommended charity plans will lead to lower state taxes. 

Andrew Roth, also with Danziger & Markhoff, said that under CARES ACT, if you or your spouse or dependent are diagnosed with coronavirus by a CDC-approved test and or experience adverse financial consequences, then “qualified individuals can elect in their tax return to treat allowable in-service distributions in 2020 as CRDs even if their employer’s plan does not adopt CRDs.”

Shiva Bhashyam, Certified Financial Planner, emphasized the importance of Financial Planning in Retirement and offered Market update and outlook, Retirement planning checklist, and Behavioral investing – how and why to manage emotions during volatile markets.

Kim Ramchandani, Senior Vice President, Financial Consultant, Webster Investments, spoke about Long-Term Care Planning Options, and on ways to help you to have a conversation with your loved ones about making a plan now about your wishes. “It is important because your life and your health don’t just affect you; they affect all the people who love and care for you,” she said.  

David Foley, who works closely with Webster Investments, in his presentation spoke about Tax Incentives to us in 2020. Pointing to the fact that a third of our society is in retirement, he said, they can be used to reimburse age related caps in the tax laws. Long Term Care, he said, is the option to live in the community rather than be institutionalized when one is old or disabled. He warned that when one is older, Medicare and Medicaid will run their course soon, and one’s savings will end and one’s family will not be there to care for you. He suggested using Long Term Care Plans as   a way to prepare to cover the cost of treatment when you need it the most.

In his remarks, GOPIO International Chairman Dr. Thomas Abraham reminded participants of the many efforts by GOPIO including a delegation to the IRS representing Indian Americans on their many concerns.

GOPIO-CT President Ashok Nichani highlighted their many initiatives, especially educating Indian Americans on Taxes and Tax Laws in the US.

Image courtesy of (Photos: GOPIO-CT)

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