Learning Center for Tax and Financial Insights

Grandparents rearing grandchildren may qualify for a variety of tax breaks. They include head of household filing status, child tax credit, earned income tax credit, childcare credit, education credits, and medical expense deductions.

Article Highlights:SECURE 2.0 ActCatch-up ContributionsIncentives to Contribute to a PlanLong-term Part-time WorkersAutomatic EnrollmentRequired Minimum DistributionsRMD PenaltiesEmergency Savings AccountsPenalty-Free WithdrawalsOther Distribution Changes In 2019 Congress passed legislation named the Setting Every Community Up for Retirement Enhancement Act – shortened to the SECURE Act – that included a number of retirement plan changes and enhancements. In late December, 2022, the SECURE 2.0 Act was passed and signed by President Biden. Many of the provisions of SECURE 2.0 were designed to encourage more Americans to save more for their retirement years and make it easier to do so. Some of these changes could impact your retirement plan strategy. Here are some of the highlights of SECURE 2.0:Contributions to IRAs and Other PlansSome of the law changes that are meant to encourage more workers to save for retirement include:Catch-up contributions – Employees age 50 and older are allowed to make additional pre-tax contributions to their 401(k) plans over the regular annual limit. Referred to as “catch-up” contributions, the idea is to get older workers to build up their retirement accounts in their last few years of working. The catch-up amount originally started out many years ago at $1,000, but has grown with annual inflation adjustments to $7,500 for 2023. Starting in 2025, for plan participants age 60 to 63, the catch-up amount increases to at least $10,000 per year and will be inflation-adjusted after 2025.The amount of the catch-up contribution IRA owners age 50 and over can make has long been $1,000 per year. Starting in 2024, the $1,000 will be indexed for inflation in $100 increments.Under SECURE 2.0 employers can revise their retirement plans so that employees can choose to have employer-matching and catch-up contributions go into a Roth-style plan with after-tax contributions. Historically, the matching and catch-up contributions have only been allowed as pre-tax contributions. However, starting in 2024, plan participants making more than $145,000 per year from the employer sponsoring the plan can only have their catch-up contributions and the employer-matching amounts go into the employer’s Roth plan. With Roth contributions there is no tax deduction or tax-free wages benefit, but withdrawals from the Roth plan, including investment gains, are tax-free once the account owner reaches age 59½ and has had the plan for at least 5 years.Financial incentives to contribute to a plan – As noted above, employers can provide matching contributions as a long-term incentive for employees to contribute to a 401(k) plan. However, immediate financial incentives (like gift cards in small amounts) have been prohibited even though individuals may be especially motivated by them to join their employers’ retirement plans. SECURE 2.0 enables employers to now offer de minimis financial incentives, not paid for with plan assets, such as low-dollar gift cards, to boost employee participation in workplace retirement plans.Long-term part-time workers –The original SECURE Act required employers to allow long-term, part-time workers to participate in the employers’ 401(k) plans. Except in the case of collectively bargained plans, employers maintaining a 401(k) plan have had a dual eligibility requirement under which an employee must complete:1 year of service (working at least 1,000 hours) or3 consecutive years of service (where the employee completes at least 500 hours of service).Starting in 2025, SECURE 2.0 reduces the 3-year rule to 2 years, disregards pre-2021 service for vesting purposes, and extends the long-term part-time coverage rules to 403(b) plans that are subject to the Employee Retirement Income Security Act of 1974 (ERISA). These plans are generally provided by governments or tax-exempt organizations and are sometimes known as “tax-sheltered annuities.” Automatic enrollment required – Most employees under-save for their retirement. Some don’t participate at all in their employer’s plan. To encourage greater participation, effective for plan years beginning after 2024, SECURE 2.0 requires 401(k) and 403(b) plans to automatically enroll participants in the respective plans upon becoming eligible, although employees may opt out of coverage. The initial auto-enrollment amount is at least 3% but not more than 10% of an employee’s compensation. Each year thereafter that amount is increased by 1% until it reaches at least 10%, but not more than 15%.All 401(k) and 403(b) plans in existence before December 29,2022 are not required to have automatic enrollment, but some of these employers may want to do so anyway, or may have already established auto-enrollment arrangements. Also exempt from mandatory enrollment are small businesses with 10 or fewer employees; SIMPLE Plans; employers that have been in business for less than three years; and church and government plans. Distributions from IRAs and Retirement PlansThe SECURE 2.0 Act made significant changes to when distributions must or may be made from retirement plans, including the following:Required Minimum Distributions (RMD) – While some individuals would prefer to keep their tax-advantaged contributions to retirement plans and traditional IRAs growing until their death so that more money goes to their heirs, Congress doesn’t see it that way and requires distributions to be made. As far back as the 1960s distributions had to be made once the account owner reached age 70½, but the SECURE Act extended the age to 72, and SECURE 2.0 changes it again, to 73 as of 2023. But the language of the SECURE 2.0 bill is a bit awkward and can be interpreted that because someone who turned 72 in 2022 was required to take a 2022 distribution, the fact that they turn 73 in 2023 doesn’t let them claw back the 2022 distribution already made or skip a 2023 distribution. So, unless the wording of the tax code is changed in a technical corrections bill, just those who turn 72 in 2023 will be excused from being required to take a 2023 distribution. Starting in 2033 the distribution beginning age increases to 75.Regardless of the required beginning date, if a taxpayer so chooses, he or she can delay the first year’s RMD until the second year, thus making the distribution includible in the second year’s tax return. This is sometimes desirable if the taxpayer has substantial wages or other income in the year the mandatory distribution age is reached and expects less income the next year. In this situation, by delaying the distribution to the second year the tax bracket could be substantially lower. If the taxpayer chooses that option, then:

This section includes a library of over one hundred financial calculators. The calculators are easy-to-use and provide in-depth analysis for virtually any financial scenario, along with graphs, charts and tables. The calculators are categorized by subject matter, which can be accessed from the links.Please give us a call if you need assistance with the input or understanding the computed results for any of the calculators. We are dedicated to providing our clients with valuable online resources to assist them with their everyday needs and long-range planning. Cash FlowHow Does Inflation Impact My Standard Of Living? Understand how rising prices affect your purchasing power and lifestyle. Expand to Full View Open in New TabHow Much Am I Spending? Track your expenses to gain better control over your budget. Expand to Full View Open in New TabHow Much Do I Need For Emergencies? Calculate the ideal emergency fund to cover unexpected expenses. Expand to Full View Open in New TabShould I Pay Down Debt Or Invest My Monthly Surplus? Evaluate whether it's smarter to reduce debt or grow your investments. Expand to Full View Open in New TabHow Long Will My Money Last With Systematic Withdrawals? Find out how long your savings will last during retirement withdrawals. Expand to Full View Open in New TabShould My Spouse Enter The Work Force? Analyze the financial impact of a spouse entering or re-entering the workforce. Expand to Full View Open in New TabWhat Is My Current Net Worth? Determine your current financial position by calculating your net worth. Expand to Full View Open in New TabWhat Is My Projected Net Worth? Estimate your future net worth based on savings and investment plans. Expand to Full View Open in New TabWhat Is My Current Cash Flow? Measure your cash inflows versus outflows to understand your liquidity. Expand to Full View Open in New TabWhat Is My Projected Cash Flow? Forecast future cash flow based on expected income and expenses. Expand to Full View Open in New TabWhat Is The Value Of Reducing, Postponing or Foregoing Expenses? See the financial benefits of cutting or delaying expenses. Expand to Full View Open in New TabCollegeHow Much Should I Be Saving For College? Plan and calculate the amount needed to save for future college expenses. Expand to Full View Open in New TabFeasibility of Student Loan Repayment Assess your ability to repay student loans after graduation. Expand to Full View Open in New TabWhat Are The Advantages Of A Coverdell ESA? Learn how a Coverdell ESA can help fund education expenses with tax advantages. Expand to Full View Open in New TabWhat Are The Advantages Of A 529 College Savings Plan? Discover the tax benefits and growth potential of a 529 savings plan. Expand to Full View Open in New TabWhat Is The Value Of A College Education? Analyze the financial return on investing in a college education. Expand to Full View Open in New TabWhat Are The Payments On A Parental (PLUS) Loan? Calculate monthly payments required for a parental PLUS loan. Expand to Full View Open in New TabShould I Live At Home, On Campus, Or Off Campus? Compare the costs and benefits of different living arrangements during college. Expand to Full View Open in New TabCreditHow Long Will It Take To Pay Off My Credit Card? Estimate how long it will take to eliminate your credit card debt. Expand to Full View Open in New TabHow Long Until My Loan Is Paid Off? Calculate the payoff timeline for your loan based on your payments. Expand to Full View Open in New TabWhat Would My Loan Payments Be? Determine monthly loan payments based on loan terms and rates. Expand to Full View Open in New TabShould I Lease or Purchase An Auto? Weigh the pros and cons of leasing versus purchasing a car. Expand to Full View Open in New TabWhat Is The Balance On My Loan? Find out the remaining balance on your outstanding loan. Expand to Full View Open in New TabShould I Consolidate My Personal Debt Into A New Loan? Explore the potential savings of consolidating multiple debts into one loan. Expand to Full View Open in New TabWhich Is Better: Cash Up Front Or Payments Over Time? Compare the financial benefits of paying cash versus financing over time. Expand to Full View Open in New TabWhat Is The Impact Of Making Extra Payments On My Debt? See how extra debt payments can reduce your payoff time and interest costs. Expand to Full View Open in New TabShould I Pay Off Debt or Invest? Analyze whether you should prioritize paying debt or investing your money. Expand to Full View Open in New TabAuto Purchase: Loan Versus 0% Dealer Financing? Evaluate loan offers versus dealer incentives for buying a vehicle. Expand to Full View Open in New TabHome and MortgageHow Much Home Can I Afford? Calculate how much house you can realistically afford based on income and debts. Expand to Full View Open in New TabShould I Refinance My Mortgage? Assess whether refinancing your mortgage will save you money. Expand to Full View Open in New TabComprehensive Mortgage Calculator Get a complete picture of your mortgage costs and payments. Expand to Full View Open in New TabComparing Mortgage Terms (i.e. 15, 20, 30 year) Compare mortgage term lengths to find the best fit for your finances. Expand to Full View Open in New TabShould I Pay Discount Points For A Lower Interest Rate? Determine if paying discount points makes financial sense for you. Expand to Full View Open in New TabShould I Rent or Buy A Home? Analyze the financial implications of renting versus buying a home. Expand to Full View Open in New TabShould I Convert to a Bi-Weekly Payment Schedule? See how switching to bi-weekly mortgage payments can save you money. Expand to Full View Open in New TabCompare A 'No-Cost' Versus Traditional Mortgage Weigh the benefits and drawbacks of no-cost mortgage options. Expand to Full View Open in New TabWhat Are The Tax Savings Generated By My Mortgage? Understand how mortgage interest can impact your tax bill. Expand to Full View Open in New TabWhich is Better: Fixed or Adjustable-Rate Mortgage? Compare fixed-rate versus adjustable-rate mortgages to find your best fit. Expand to Full View Open in New TabAdjustable Rate Mortgage Calculator Estimate payments and risks associated with adjustable-rate mortgages. Expand to Full View Open in New TabHow Do Closing Costs Impact The Interest Rate? Understand how closing costs can affect your mortgage interest rate. Expand to Full View Open in New TabInvestmentHow Should I Allocate My Assets? Get guidance on dividing your investments among different asset classes. Expand to Full View Open in New TabCompare Taxable Versus Tax-Free Investment Return Compare the returns of taxable versus tax-free investment accounts. Expand to Full View Open in New TabWhat Is The Value Of A Bond? Calculate the value of a bond based on interest rates, face value, and time to maturity. Expand to Full View Open in New TabWhat Is The Return On My Real Estate Investment? Estimate the return on investment for your real estate properties. Expand to Full View Open in New TabWhat Is The Value Of Compound Interest? Calculate the future value of an investment based on compound interest. Expand to Full View Open in New TabWhat Is The Value Of A Call Or Put Option? Determine the value of a call or put option in your investment portfolio. Expand to Full View Open in New TabTaxable vs. Tax-Deferred Savings? Compare the benefits of taxable versus tax-deferred savings accounts. Expand to Full View Open in New TabWhat Is My Risk Tolerance? Assess your risk tolerance to better align your investments with your goals. Expand to Full View Open in New TabWhat Is The Long-Term Impact Of Increased Investment Return? Evaluate the long-term impact of higher investment returns on your savings. Expand to Full View Open in New TabCertificate Of Deposit (CD) Analyzer Analyze the potential returns from a Certificate of Deposit. Expand to Full View Open in New TabWhat Is The Dividend Yield On A Stock? Calculate the dividend yield on your stock investments. Expand to Full View Open in New TabInsuranceHow Much Life Insurance Do I Need? Estimate the amount of life insurance coverage you need based on your personal situation. Expand to Full View Open in New TabWhat Is My Life Expectancy? Calculate your estimated life expectancy based on various health and lifestyle factors. Expand to Full View Open in New TabWhat Are My Needs For Burial And Final Expenses? Estimate the costs of burial and final expenses to ensure you’re financially prepared. Expand to Full View Open in New TabHow Much Disability Income Do I Need? Calculate the disability income insurance coverage you need based on your current income and expenses. Expand to Full View Open in New TabWhat Are My Chances of Becoming Disabled? Estimate your likelihood of experiencing a disability during your lifetime. Expand to Full View Open in New TabWhat Are My Long-Term Care Needs? Determine the amount of long-term care insurance you need based on your personal situation. Expand to Full View Open in New TabHow Much Will I Earn In My Lifetime? Estimate your total lifetime earnings based on your current job and salary trajectory. Expand to Full View Open in New TabWhat Are The Tax Advantages Of An Annuity? Analyze the potential tax benefits of annuity investments. Expand to Full View Open in New TabHow Long Will My Current Life Insurance Proceeds Last? Determine how long your life insurance benefits will last based on your spending habits. Expand to Full View Open in New TabWhat Is The Future Value Of An Annuity? Calculate the future value of an annuity investment based on interest rates and time. Expand to Full View Open in New TabPaycheck and BenefitsHow Much Will My Company Bonus Net After Taxes? Determine how much of your company bonus will remain after tax deductions. Expand to Full View Open in New TabHow Will Payroll Adjustments Affect My Take-Home Pay? Estimate how changes in payroll deductions will impact your take-home pay. Expand to Full View Open in New TabConvert My Salary To An Equivalent Hourly Wage Convert your annual salary to an equivalent hourly wage. Expand to Full View Open in New TabConvert My Hourly Wage To An Equivalent Annual Salary Convert your hourly wage to an equivalent annual salary. Expand to Full View Open in New TabWhat Is The Future Value Of My Employee Stock Options? Estimate the future value of your employee stock options based on projected growth. Expand to Full View Open in New TabShould I Exercise My 'In-The-Money' Stock Options? Evaluate whether to exercise your 'in-the-money' stock options based on current market conditions. Expand to Full View Open in New TabWhat May My 401(k) Be Worth? Estimate how much your 401(k) plan may be worth when you retire. Expand to Full View Open in New TabWhat Is The Impact Of Increasing My 401(k) Contribution? Evaluate how increasing your 401(k) contributions will impact your retirement savings. Expand to Full View Open in New TabRetirementHow Will Retirement Impact My Living Expenses? Estimate how your living expenses will change after retirement. Expand to Full View Open in New TabHow Much Will I Need To Save For Retirement? Determine how much money you need to save for a comfortable retirement. Expand to Full View Open in New TabAre My Current Retirement Savings Sufficient? Evaluate whether your current savings are enough to meet your retirement goals. Expand to Full View Open in New TabSocial Security Retirement Income Estimator Estimate your Social Security benefits and how they will impact your retirement income. Expand to Full View Open in New TabHow Does Inflation Impact My Retirement Income Needs? Assess how inflation will affect your retirement income needs over time. Expand to Full View Open in New TabSavingBecoming A Millionaire Estimate how long it will take to reach a million-dollar savings goal based on your savings rate and investment return. Expand to Full View Open in New TabIncome Generated By A Savings Plan Calculate the income generated from a savings plan based on deposit amount and interest rate. Expand to Full View Open in New TabHow Long Will It Take To Double My Savings? Estimate how long it will take for your savings to double with a given interest rate and contribution. Expand to Full View Open in New TabHow Long Until My Savings Reach My Goal? Determine how long it will take to reach your savings goal based on your current savings rate. Expand to Full View Open in New TabSave Now vs. Save Later Compare the benefits of saving now versus saving later for your financial goals. Expand to Full View Open in New TabHow Much Should I Save to Reach My Goal? Estimate how much money you need to save each month to reach your financial goals. Expand to Full View Open in New TabWhat Will My Current Savings Grow To? Estimate the future value of your current savings based on a specified interest rate. Expand to Full View Open in New TabCalculate Rate Of Return Calculate the rate of return on an investment given initial investment, final value, and time period. Expand to Full View Open in New TabHow Do Taxes and Inflation Impact My Investment Return? Evaluate how taxes and inflation will affect the growth of your investment over time. Expand to Full View Open in New TabWhat Is The Effective Annual Yield On My Investment? Calculate the effective annual yield on your investment based on interest rate and compounding frequency. Expand to Full View Open in New TabI'm Retired, How Long Will My Savings Last? Estimate how long your retirement savings will last based on your withdrawal rate, expenses, and investment returns. Expand to Full View Open in New TabWhen Should I Begin Saving For Retirement? Determine the best age to begin saving for retirement to meet your financial goals. Expand to Full View Open in New TabShould I Convert Discretionary Expenses To Savings? Evaluate the impact of converting discretionary spending to savings on your long-term retirement goals. Expand to Full View Open in New TabHow Much Retirement Income May My 401(k) Provide? Estimate the monthly retirement income you may receive from your 401(k) based on your current balance and contribution. Expand to Full View Open in New TabCompare the Roth 401(k) to a Traditional 401(k) Compare the benefits and tax advantages of a Roth 401(k) versus a Traditional 401(k) to determine which is better for your retirement planning. Expand to Full View Open in New TabTaxationWhat Is My Potential Estate Tax Liability? Estimate your potential estate tax liability based on your estate's value and applicable tax laws. Expand to Full View Open in New TabFederal Income Tax Estimator Estimate your federal income tax liability based on your income, deductions, and filing status. Expand to Full View Open in New TabShould I Adjust My Payroll Withholdings? Evaluate whether you should adjust your payroll withholdings to avoid overpaying or underpaying taxes. Expand to Full View Open in New TabWill My Investment Interest Be Deductible? Determine if the interest from your investments is deductible under current tax laws. Expand to Full View Open in New TabHow Much Self-Employment Tax Will I Pay? Estimate your self-employment tax liability based on your income from self-employment. Expand to Full View Open in New TabCapital Gains (Losses) Tax Estimator Estimate the taxes on capital gains or losses from the sale of investments or property. Expand to Full View Open in New TabCompare Taxable, Tax-Deferred And Tax-Free Investment Growth Compare the growth of taxable, tax-deferred, and tax-free investments to determine the best option for your portfolio. Expand to Full View Open in New TabHow Much Of My Social Security Benefit May Be Taxed? Determine how much of your Social Security benefits may be taxable based on your income and filing status. Expand to Full View Open in New TabWhat Are The Tax Implications Of Paying Interest? Evaluate the tax implications of paying interest on loans or credit cards. Expand to Full View Open in New TabShould I Itemize Or Take The Standard Deduction? Determine whether it's better to itemize your deductions or take the standard deduction for your tax return. Expand to Full View Open in New TabWhat Is My Tax-Equivalent Yield? Calculate the tax-equivalent yield of a tax-free investment based on your current tax rate. 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Article Highlights:Start Off on the Right FootSole ProprietorPartnershipJoint VentureC-Corporationo Qualified Small Business Stocko Section 1244 ElectionS-CorporationLimited Liability CompanyWhen you are starting a business there are several possible business entity types that need be considered to make sure you get started off on the right foot and avoid costly mistakes that must be corrected later or those that must be changed later to maximize tax benefits. One also needs to be concerned about potential personal liability.Each business entity choice has its own pros and cons; the following is an overview of each possible business structure.Sole Proprietor – This is generally the most basic business entity. It is a single owner entity, and for tax purposes the owner reports the business’ income and expenses as part of their individual tax return, using the 1040 Schedule C. This is simpler than for other business entities where income and expenses must be reported on a separately filed business return. However, that does not mean a sole proprietor cannot have employees and retirement plans like other business entities and qualify for some of the same tax credits and business deductions available to other business entities. The sole proprietor pays income taxes on any net profit from the business, as well as self-employment tax (Social Security and Medicare taxes).Partnership - A partnership is a business entity with two or more owners with equal or different ownership interests in the business. The net profit or loss from such an entity is computed on Form 1065, and the profit or loss and other tax attributes are passed through to the partners on Schedule 1065 K-1 and included on their individual 1040 returns. Like a sole proprietor except the net profit and loss is determined at the partnership level and each partner’s proportionate share is passed through to them via the K-1. The major difference being a partnership agreement is required to establish business policies and how partnership funds are spent. Partners are also personally responsible for all the liabilities incurred by any of the partners. Partners who perform work for the partnership are not considered employees, and therefore, will be responsible for paying income and self-employment taxes on their share of the profits.Joint Venture - Occasionally, a married couple may be in business together. Spouses who file a joint return may elect out of the partnership rules. Thus, when the election is made, a joint venture between them is not treated as a partnership for tax purposes. All items of income, gain, loss, deduction, and credit are divided between the spouses according to their respective interests in the venture, and each spouse considers their respective share of these items as if they were attributable to a trade or business conducted by the spouse as a sole proprietor. Accordingly, each electing spouse will report their shares on Schedule C. This rule does not apply to spouses who operate in the name of a state law entity (including a general or limited partnership or a limited liability company). The election can be made only for a business operated by spouses as co-owners that is, or should otherwise be, taxed as a partnership (whether there is a formal partnership). Both spouses must materially participate in the trade or business.C-Corporation -A c-corporation is a legal entity that is separate and distinct from its owners. Under the law, corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, and own assets. Domestic corporations in existence for any part of a tax year must file a federal income tax return – generally Form 1120 – even if they do not have taxable income. Unlike some other business entities corporations pay taxes on their profits. Shareholders profit through dividends and stock appreciation but are not personally liable for the company's debts. This can result in double taxation since dividends paid are not deductible by the corporation, thus taxable at the corporate level and taxable to the shareholder. Shareholders who perform work for the corporation are considered employees.o Qualified Small Business Stock - One big benefit for smaller C-corporations is the ability for shareholders to exclude up to $10 million from the sale of stock that meets a five-year holding period and the definition of a qualified small business stock.o Section 1244 Election - C-corporations can also make what is called a Sec. 1244 election which allows an ordinary loss (Form 4797) on the sale of stock from a domestic corporation of up to $50,000 annually ($100,000 on a joint return, even if the stock is only owned by one of the spouses), even though the loss would otherwise be treated as a capital loss. Gains still qualify as capital gains. There are several requirements to qualify for this treatment one of which is the stock must be purchased from the corporation.S Corporation – An S corporation is a corporation that makes an election to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes thus avoiding the double taxation issue discussed previously. Form 1120-S is the federal tax return required to be filed by S corporations, and Schedule 1120-S K-1 is used to report each shareholder’s portion of the income/loss, deductions, and credits. Just because an S corporation is a pass-through entity, it does not mean the income can all be passed through to a working shareholder and escape payroll taxes. Working shareholders are required to take reasonable compensation which is reported on Form W-2 (wages).o S-Election - The election by a corporation or other entity eligible to be treated as a corporation, must be made no more than 2 months and 15 days after the beginning of the tax year for which the election is to take effect, or at any time during the tax year preceding the tax year it is to take effect. If the election was not made within the 2 months and 15 days prescribed to make the election, then a late election is available if certain conditions are met.Limited Liability Company (LLC) – A Limited Liability Company (LLC) is a form of state business entity. The IRS did not create a new tax classification for the LLC when LLCs were created by the states; instead, IRS uses existing tax entity classifications: C or S corporation, partnership, or sole proprietor (the latter also being termed a disregarded entity). For federal purposes an LLC is always classified by the IRS as one of these types of entities. Regulation of LLCs varies from state to state. The profits, losses, and tax credits from an LLC are passed through to its members (LLC owners are called members, not shareholders), who report them on their individual tax returns. As the name implies, an LLC provides the same liability protection to its members as a corporation does to its shareholders.

The proposed merger between the Professional Golfers' Association (PGA) and Live! Inc. (LIV) has generated significant attention. Last year, numerous former PGA Tour players, like Phil Mickelson, Bubba Watson, Dustin Johnson, and Brooks Koepka, left the PGA to compete in LIV events. The move caused a massive divide in the golf world, with both fans and players who remain aligned with the PGA speaking out against the Saudi Arabian-owned enterprise. Among the players who stayed with the PGA, including Rickie Fowler, Jordan Spieth, and Justin Thomas, Northern Irishman Rory McIroy has been the most outspoken about his disdain for the LIV as a whole. The four-time Major winner made headlines during the 2023 Genesis Scottish Open when he said, "If LIV Golf was the last place to play golf on earth I would retire. That's how I feel about it.”In the light of recent comments made by Oregon Senator Ron Wyden (D), a prominent figure in tax legislation, this guide aims to clarify some of the tax issues surrounding the potential golf merger. Bear in mind, however, that there is an ongoing Department of Justice investigation into the legality of the PGA-LIV pact.Bubba Watson: Tom Dulat / Getty Images Sport via Getty ImagesSenator Ron Wyden's StatementsSenator Wyden, chairman of the Senate Finance Committee, is frequently involved in tax legislation. In June of this year, Wyden launched a probe into the golf merger amid concerns about the resulting entity’s tax-exempt status in the United States. In a memo, Wyden wrote, “I believe it is critical that lawmakers understand what risks this arrangement may pose to America’s national interests, particularly with respect to foreign investment in U.S. real estate, such as locations neighboring military facilities or sensitive manufacturing centers, and how you plan to mitigate those risks.”Additionally, he shared that he believes, "An organization that betrays its own word and agrees to become a profit generator for Saudi Arabia’s brutal regime has disqualified itself for a tax exemption.”

When you are starting a business, there are several possible business entity types that need to be considered to make sure you get started off on the right foot and avoid costly mistakes that must be corrected later or those that must be changed later to maximize tax benefits.