- Family-owned businessesReturns, payroll and planning for owner-run companies.Learn more about small business accounting →
- Inheritance taxWho pays New Jersey inheritance tax, and how much.Learn more about NJ inheritance tax →
- Partnerships and LLCsMulti-owner businesses and family partnerships.Learn more about partnership tax →
- Rental propertyCommercial and residential rentals, depreciation and 1031s.Learn more about real estate accounting →
Montville, Pine Brook and Towaco
Montville Township has three sections: Montville, Towaco and Pine Brook. Route 46 runs through the center of Pine Brook, lined with restaurants, contractors and professional offices, and Towaco station sits on NJ Transit's Montclair-Boonton Line. Many of the businesses here are family-owned, and the questions that matter most are about bringing the next generation in and passing the business and property on well.
Family-owned businesses
- Paying family members. Wages to children who actually work in the business can shift income to a lower bracket. A child under 18 working for a parent's sole proprietorship isn't subject to Social Security and Medicare tax.
- Bringing in the next generation. Gifting or selling shares over time, with valuations that hold up. The annual gift tax exclusion is $19,000 per recipient for 2026.
- Partnerships and LLCs. Capital accounts, guaranteed payments and allocations among family owners. See multi-member LLC and partnership tax.
- NJ BAIT. Electing the pass-through business alternative income tax can move state tax around the federal SALT cap. See NJ BAIT and NY PTET.
Passing things on
- New Jersey inheritance tax. Spouses, children, grandchildren and parents are exempt. Siblings and sons- and daughters-in-law pay 11% to 16% above $25,000, and nieces, nephews and friends pay 15% to 16%. See New Jersey inheritance tax.
- Federal estate tax. The exemption is $15 million per person for 2026, so most families' real exposure is the inheritance tax and income tax, not estate tax.
- Step-up in basis. Property inherited at death generally takes a new basis at its date-of-death value, which is why gifting appreciated property during life isn't always the better choice.
Rental and commercial property
For owners of rental homes and commercial buildings we prepare Schedule E and partnership returns, track depreciation, and plan sales and 1031 exchanges. See real estate accounting.
How we work
Most of our work happens through our secure client portal, by phone and by video call. In-person meetings are available by appointment. We respond within one business day, and we're available Saturdays as well as weekdays.
Frequently asked questions
Who pays New Jersey inheritance tax?
Spouses, civil union partners, children, grandchildren and parents are exempt. Siblings and sons- and daughters-in-law pay 11% to 16% on amounts above $25,000. Other beneficiaries, such as nieces, nephews and friends, pay 15% to 16%.
Can I hire my children in my business?
Yes, if they do real work and are paid a reasonable wage. Wages paid by a parent's sole proprietorship to a child under 18 aren't subject to Social Security and Medicare tax.
How much can I give each year without filing a gift tax return?
For 2026, up to $19,000 per recipient. Larger gifts require a gift tax return but rarely any tax, because they count against the $15 million lifetime exemption.
Do you serve Pine Brook and Towaco?
Yes. Both are part of Montville Township. We work with clients there through our secure portal, by phone and video, with in-person meetings in Mine Hill by appointment.