Taxation of estates & trusts

TOPICS / TAX

March 3, 2016

Estate basis consistency reporting rules are proposed

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

March 1, 2016

Trusts prevail in transferee liability case

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

March 1, 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.

February 11, 2016

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.

February 1, 2016

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.

January 1, 2016

Tax Court allows discount for assumption of estate taxes

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

December 1, 2015

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.

December 1, 2015

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.

November 1, 2015

Converting from C to S corp. may be costlier than you think

Gift or estate valuation of interests may be significantly higher, incurring more tax.

October 21, 2015

IRS issues 2016 inflation adjustments and tax tables

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.

September 9, 2015

Proposed rules govern taxation of gifts and bequests from covered expatriates

Proposed regulations under Sec. 2801 would impose a transfer tax on gifts or bequests from covered expatriates made on or after June 17, 2008.

September 1, 2015

IRS issues final portability rules for estate tax exemptions

No short-form option is provided; regulatory time extension is allowed only for estates valued below the filing threshold.

August 21, 2015

IRS announces delayed due date for new estate basis reporting rules

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.

August 14, 2015

New law imposes immediate estate basis and reporting requirements

The highway funding bill made changes to the Internal Revenue Code that affect estates and beneficiaries, including new reporting rules.

August 1, 2015

Basis rules for estates of 2010 decedents proposed

Carryover basis election for estates electing out of estate tax requires special adjustments.

August 1, 2015

Gifts to family trust are present interests in property

Annual exclusions were available for gifts to a family trust that qualified as a Crummey trust.

July 1, 2015

Transfer taxes: 5 questions to ask clients with international ties

Planning to lessen estate, gift, and generation-skipping transfer taxes increasingly requires considering clients’ foreign connections.

June 15, 2015

IRS issues final portability rules for estate tax exemptions

The IRS issued final regulations on the portability of deceased spouses’ unused estate tax exemption amounts, which allows surviving spouses to use unused amounts of exemption from the estate tax in addition to their own exemptions.

May 8, 2015

Basis rules for estates of 2010 decedents proposed

The IRS issued proposed regulations to amend various regulation sections to take into account special rules that affect the basis of assets acquired from a decedent who died in 2010 and for which an executor made a Sec. 1022 election.

March 20, 2015

AICPA asks IRS for portability relief for surviving spouses

The AICPA sent a letter to the IRS on recommending ways to make it easier for surviving spouses to elect portability of the deceased spouse’s unused estate tax exemption.