The IRS removed a prohibition on making a qualified terminable interest property (QTIP) election when the election would have been null and void because the estate had a zero estate tax liability.
Taxation of estates and trusts
The new law imposes a potentially elaborate reporting regime for values of estate property and ominous consequences for failures.
Charitable deductions stand a much better chance of being upheld when taxpayers closely follow the qualified appraiser rules.
The IRS announced one last postponement in the due date for filing under rules requiring reporting of the value of an estate’s assets to the IRS and beneficiaries.
Many charitable organizations will not accept a gift of an LLC or limited partnership units because the entity’s business is not part of their charitable mission.
The regulations reiterate the delayed reporting deadline of March 31, 2016.
Sumner Redstone’s 1972 transfer to children’s trusts, unlike his brother’s, was voluntary and nonbusiness-related.
State law theories of liability were not proved, the Tax Court holds.
The IRS further postponed the due date for the new reporting requirement, under which estates must report the value of estate assets to the IRS and to beneficiaries.
The 1972 transfer was in the ordinary course of business and for full and adequate consideration, the Tax Court holds.
A net gift calculation is accepted under the willing buyer/seller test.
The remainder interest must be calculated assuming annual distribution amounts equal to the greater of 5% or the fixed percentage stated in the trust instrument.
The highest gift or estate tax rate applies after the gift tax annual exclusion amount; the marital deduction and QTIPs are among the possible exclusions.
Gift or estate valuation of interests may be significantly higher, incurring more tax.
The IRS issued the annual inflation adjustments for 2016 for more than 50 tax provisions as well as the 2016 tax rate tables for individuals and estates and trusts.
Proposed regulations under Sec. 2801 would impose a transfer tax on gifts or bequests from covered expatriates made on or after June 17, 2008.
No short-form option is provided; regulatory time extension is allowed only for estates valued below the filing threshold.
The IRS issued guidance delaying the due date for compliance with the recently enacted rules that require consistent basis reporting between an estate and anyone acquiring property from the estate.
The highway funding bill made changes to the Internal Revenue Code that affect estates and beneficiaries, including new reporting rules.
Carryover basis election for estates electing out of estate tax requires special adjustments.