Exploring the estate tax: Part 2
This second part of a two-part article on everything practitioners should know about the estate tax covers estate tax planning techniques, including the marital deduction and the use of various types of trusts.
Taxation of Estates & Trusts
Exploring the estate tax: Part 1
This first installment of a two-part article on everything practitioners should know about the estate tax includes the unified estate tax rules and exemption amounts, estate valuation, portability, and what’s included in the gross estate.
IRS provides simplified method for late portability elections
Previously, since 2014, an extension of time to claim the deceased spousal unused amount could be obtained only by a letter ruling request.
Use of trust disclaimers in estate planning
A beneficiary’s disclaimer could adjust the results of an existing irrevocable trust.
Monster.com founder’s estate wins dispute over VPFC gain recognition
The contracts' extension was not a sale or exchange, and open-transaction treatment continued, the Tax Court holds.
Planning opportunities for the final tax return
Many tax attributes vanish at the end of life, and clients are well-advised to include them in their final arrangements.
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.
