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.
Taxation of Estates and Trusts
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.
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.
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.
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.
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.
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.
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.
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.
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.
Basis rules for estates of 2010 decedents proposed
Carryover basis election for estates electing out of estate tax requires special adjustments.
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.
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.
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.
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.
