A Message From Our Team

Dear Clients and Friends,

As our firm continues to monitor the COVID-19 (Coronavirus) situation, we wanted to take a few minutes to reach out to our clients, friends, and community. As you are aware, we are in the heart of the busiest time of year for our industry. Scheffel Boyle remains fully operational in our seven offices – Alton, Edwardsville, Belleville, Highland, Jerseyville, Columbia, and Carrollton, IL. We are and will continue to be dedicated to serving and advising you. We are focused on high quality service and the health and safety of our clients, team members, business partners, vendors, and their families.

We are currently reviewing and updating internal policies, particularly regarding in-person meetings and office visitors. At this time, we have taken the following measures to ensure service continuity remains strong, but also that important safety precautions are taken:

  1. Encouraging meetings over the phone with clients rather than face-to-face
  2. Promoting an easy, secure upload of client documents through our online portal, ShareFile. Please contact your Scheffel Boyle team member for details on how to use this feature.
  3. Limiting non-essential employee travel and client contact
  4. Strict return from illness policies and exposure policy with quarantine period
  5. Sanitizers distributed throughout offices
  6. Frequent disinfecting wipe-downs of common areas in all offices

Our leadership is closely monitoring Federal, State, local government, and IRS updates regarding both this issue and our usual deadlines during busy season. We are also taking actions to have as little disruption as possible to our professional work, while keeping safety top-of-mind. The CDC recommends the following routine preventative actions to help prevent the spread of virus, including everyday habits which we are stressing to all our team:

  1. Wash your hands often with soap and water for at least 20 seconds, especially after going to the bathroom; before eating; and after blowing your nose, coughing or sneezing. If soap and water aren’t available, use an alcohol-based sanitizer that is at least 60% alcohol.
  2. Avoid close contact with people who are sick.
  3. Avoid touching your eyes, nose and mouth.
  4. Stay home when you are sick or have been exposed to someone with the virus.
  5. Cover your cough or sneeze with a tissue, then throw the tissue in the trash.
  6. Clean and disinfect frequently touched objects and surfaces using disinfectant wipes.
  7. Avoid contact with anyone who has recently been outside the United States

Our policies and the measures we take internally during this crisis are fluid and will remain adaptive as the situation evolves. We will communicate with our clients if our current situation, policies, or procedures were to change.

Please reach out to our team with any questions or concerns you may have during this time. We remain dedicated to serving you and doing things for the health and safety of our team, clients, community, and friends.

 

Sincerely,

The Scheffel Boyle Team

The 2019 Gift Tax Return Deadline is Almost Here

Most people have April 15th burned in their minds as the deadline for filing their federal income tax returns. What you may forget is that the gift tax return deadline is on the very same date. So, if you made large gifts to family members or heirs last year, it’s important to determine whether you’re required to file.


Filing Requirements

Generally, you must file a gift tax return for 2019 if, during the tax year, you made gifts that exceeded the $15,000-per-recipient gift tax annual exclusion (other than to your U.S. citizen spouse) or that you wish to split with your spouse to take advantage of your combined $30,000 annual exclusion.

You also need to file if you made gifts to a Section 529 college savings plan and wish to accelerate up to five years’ worth of annual exclusions ($75,000) into 2019. Other reasons to file include making gifts:

  • That exceeded the $155,000 annual exclusion for gifts to a noncitizen spouse, or
  • Of future interests (such as remainder interests in a trust) regardless of the amount, or
  • Of jointly held or community property.

Keep in mind that you’ll owe gift tax only to the extent an exclusion doesn’t apply and you’ve used up your lifetime gift and estate tax exemption ($11.4 million for 2019). As you can see, some transfers require a return even if you don’t owe tax.

No Return Required

No gift tax return is required if your gifts for the year consist solely of gifts that are tax-free because they qualify as annual exclusion gifts, present interest gifts to a U.S. citizen spouse, educational or medical expenses paid directly to a school or health care provider, or political or charitable contributions.

But if you transferred hard-to-value property, such as artwork or interests in a family-owned business, consider filing a gift tax return even if you’re not required to. Adequate disclosure of the transfer in a return triggers the statute of limitations, generally preventing the IRS from challenging your valuation more than three years after you file.

Be Ready

If you owe gift tax, the payment deadline is indeed April 15 — regardless of whether you file for an extension (in which case you have until October 15 to file). If you’re unsure whether you must (or should) file a 2019 gift tax return, contact us.

Raising Financially Responsible Kids

If you help your kids understand money when they’re young, they’re more likely to develop sound financial habits when they’re adults. Of course, you’ll want to tailor the information to your child’s age. Here are some tips:

Toddlerhood and preschool. Talk about how most people work to earn money to buy things like food and toys. Bring your kids along on shopping trips and discuss how much various items cost. Point out that buying a more expensive item means less money for other things.

Early elementary school. Explain the difference between needs and wants. Provide a small “piggy bank.” It might help if it’s a clear container so kids can see their cash grow. Consider offering a small reward when the stash reaches a specific level.

Later elementary and middle school. Decide how you’ll handle allowances. Some parents choose to remit an allowance only if certain chores are completed. Others provide it no matter what and discipline the child in other ways. Whatever your approach, teach your child to budget and have him or her set aside part of the allowance to introduce the concept of savings.

Middle school. Gradually increase your child’s allowance. Suggest earning extra money through babysitting or other jobs.

High school. If possible, encourage your child to get a part-time job. Reinforce the importance of savings — whether for further education or some other goal. Discuss how to use credit wisely and how interest compounds over time.

Maintaining an open dialogue about finances and modeling sound money management can help you raise financially responsible kids. We’d be happy to provide additional ideas.