Category: Taxation-Individuals

Tax-free shopping returns to Maryland and Virginia in August for those looking for a good deal on back-to-school shopping and emergency preparedness items. Below are details on qualified items. Virginia’s Sales Tax Holiday | August 1 – 3, 2025 What items are eligible? See the detailed guidelines published by the Department of Taxation for all qualifying items. Maryland Tax-Free Week | August 10 – 16, 2025 What items are eligible? Click here for frequently asked questions provided by the Comptroller… Read more ›

At a glance CBM recognized that an attorney’s taxable income was overstated due to previously omitted pass-through entity (PTE) and foreign tax credits. By accurately claiming these credits, CBM significantly reduced the attorney’s tax liability. Challenge An attorney, earning income across multiple states and countries, suspected their tax liability was too high. After receiving no response from their accountant, they turned to CBM for guidance in ensuring the accuracy of their taxes. Solutions CBM’s professional services team conducted a thorough… Read more ›

At a Glance: A high-earning lawyer, filing multi-state income taxes, faced a substantial liability due to a previous accountants composite tax election. CBM intervened promptly to have their firm amend the filing, resulting in significant tax savings. Challenge: A lawyer engaged CBM for tax preparation services. Upon reviewing the K-1 tax form, CBM identified an unusual election for a composite tax return for the state of California. The election, made on the advice of the client’s previous accountant, prevented the… Read more ›

To help close a $3.3 billion budget gap, Maryland Governor Wes Moore has signed off on a new tax plan that raises taxes for high-income residents. The changes include new income tax brackets, a new tax on capital gains, and higher local taxes. These changes take effect July 1 and will apply to tax filings for the 2025 calendar year. New Income Tax Brackets Until now, Maryland’s top income tax rate was 5.75%. Starting next year, high earners will see… Read more ›

On May 6, 2025, Maryland Governor Maryland Wes Moore signed into law the Tax Relief and State Personnel Equality for Service Members Act (S.B. 0278). The legislation introduces provisions aimed at expanding service member tax benefits and deductions for more service members and their families. Standardization of Definitions Senate Bill 278 sets forth definitions as set in the U.S. Code. Terms such as “active service member,” “uniformed services,” and “reserve component,” are broadened to include members of the National Oceanic… Read more ›

Maryland residents, mark your calendars for the annual Shop Maryland Energy Weekend, taking place Saturday, February 15, through Monday, February 17, 2025. During this three-day event, the state’s 6% sales tax is waived on select ENERGY STAR certified appliances, offering an excellent opportunity to upgrade your home with energy-efficient products while enjoying tax savings. What is Shop Maryland Energy Weekend? Initiated to promote energy efficiency and environmental responsibility, Shop Maryland Energy Weekend is an annual event where consumers can purchase… Read more ›

It is that time of year when property owners in Maryland may receive a “Notice of Assessment” from the Maryland Department of Assessments and Taxation. Once every three years, the state reassesses the market value of properties. Any increase in the market value assessment is phased-in over three years. Many of those who received updated assessments this year are experiencing significant increases. The average increase is approximately 20% from three years ago. In some parts of the state, the average… Read more ›

Hurricane Milton has caused catastrophic damage to many parts of Florida. Less than two weeks earlier, Hurricane Helene victimized millions of people in multiple states across the southeastern portion of the country. The two devastating storms are among the many weather-related disasters this year. Indeed, natural disasters have led to significant losses for many taxpayers, from hurricanes, tornadoes and other severe storms to the wildfires again raging in the West. If your family or business has been affected by a natural… Read more ›

This is the second article in a multi-part series to address the impact of significant life transitions on tax planning. Click here for Part I. Earlier this year, Councilor, Buchanan & Mitchell (CBM) kicked off an article series about the impact of significant life transitions on tax planning. In Part I of the series, we covered getting married, divorce, having children and buying a home. In this second part of the series, we will address selling your home, starting a business and… Read more ›

The IRS has published new regulations relevant to taxpayers subject to the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. The final regs, which take effect in 2025, require many beneficiaries to take annual RMDs in the 10 years following the deceased’s death. SECURE Act Ended Stretch IRAs The genesis of the new regs dates back to the 2019 enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act. One of… Read more ›