Taxation of estates and trusts

IRS provides simplified method to request an extension of time to make a portability election

In a taxpayer-friendly development, the IRS issued guidance permitting certain estates to make a late portability election if they did not make a timely election.

Trump’s tax reform priorities unveiled

Key features include a large reduction in the corporate tax rate, fewer and lower tax brackets for individuals, and a repeal of the estate tax and the alternative minimum tax.

Trusts and estates: Uses and tax considerations

Wealth planning with these often highly advantageous tools must be weighed against possible drawbacks of income tax accounting.

IRS permits same-sex couples to recalculate marital exclusion amounts

The IRS spelled out the procedures same-sex married couples should use to recalculate the transfer-tax treatment for property transferred to spouses before the U.S. Supreme Court invalidated Section 3 of the Defense of Marriage Act.,

Estate allowed deduction for theft loss suffered by an LLC in which it held an interest

The Tax Court finds a sufficient nexus between the Ponzi scheme theft loss suffered by an LLC and the value of the estate's interest in the LLC.

Proposed regulations would affect estate valuation discounts

The IRS aims to close a 'loophole' of lapsing rights and restrictions in transfers of family-owned businesses.

IRS issues 2017 inflation adjustments for many tax provisions

The IRS issued its annual revenue procedure containing inflation-adjusted amounts for the 2017 tax year, affecting over 50 Code provisions, as well as the new tax rate tables for individuals and estates and trusts.

Guidance allows QTIP election where executor elects portability

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.

Estate basis consistency and reporting: What practitioners need to know

The new law imposes a potentially elaborate reporting regime for values of estate property and ominous consequences for failures.

The importance of appraisals when gifting art

Charitable deductions stand a much better chance of being upheld when taxpayers closely follow the qualified appraiser rules.

Estates have until June 30 to file estate basis form

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.

What to do when a client wants to give an LLC or limited partnership unit to charity

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.

Estate basis consistency reporting rules are proposed

The regulations reiterate the delayed reporting deadline of March 31, 2016.

Family stock transfer 44 years ago was a taxable gift

Sumner Redstone’s 1972 transfer to children’s trusts, unlike his brother’s, was voluntary and nonbusiness-related.

Trusts prevail in transferee liability case

State law theories of liability were not proved, the Tax Court holds.

Due date for estate basis reporting postponed once again

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.

Redstone family stock transfer was not a taxable gift

The 1972 transfer was in the ordinary course of business and for full and adequate consideration, the Tax Court holds.

Tax Court allows discount for assumption of estate taxes

A net gift calculation is accepted under the willing buyer/seller test.

New tax on expatriates’ gifts and bequests gets prop. regs.

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.

Tax Court determines value of remainder interest of a NIMCRUT

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.