The gift tax: Frequently asked questions part 2

When you present gifts to family and friends, probably the last thing on your mind – or theirs – is gift tax. For this reason, the gift tax often is often overlooked, and the average person does not know much about it. Here are more FAQs to get you familiarized with them. Don’t miss: The …

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The gift tax: Frequently asked questions part 1

When you present gifts to family and friends, probably the last thing on your mind – or theirs – is gift tax. For this reason, the gift tax often is often overlooked, and the average person does not know much about it. So, here are some FAQs to get you familiarized with gift taxes. Don’t …

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Who pays the deceased’s taxes?

When a person dies, you might be wondering who is responsible for paying his or her taxes. Generally, the person’s estate or trust is responsible for those liabilities and pays them before making distributions to the beneficiaries. In situations where the liabilities exceed the assets (i.e. insolvent), state law governs which creditors get paid first. …

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Estate and tax planning for your home

There are numerous ways to own real estate and these ownership arrangements have significant legal and tax ramifications. Let’s take a look at some of the most popular arrangements and what might happen after death. First, let’s assume that John and Jane Smith are married, and that Joe Nelson is John’s business partner. John died …

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Abandoned property up for public bid

Ever wondered what happens to the contents of abandoned safety deposit boxes? Turns out after a number of years held by the state and listed on sites such as https://azdor.gov/unclaimed-property it ends up being auctioned off and starting today you can bid on what was inside! The Arizona Department of Revenue (ADOR) will hold a …

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What happens if I die without a will?

In Season 6, Episode 5 of Parks and Recreation, Ben Wyatt tells Ron Swanson “If you die and you don’t have a real will, most of what you own will go to the government”. While in certain cases there is a sliver of truth to that statement, in Ron’s situation it would not apply. Now …

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Court ruling holds decedent’s estate liable for FBAR penalties

Dean Danielson was a U.S. citizen who formed a corporation called Sugar Creek in the 90’s. The company was in the business of selling Swiss annuities, and he opened two foreign bank accounts (one in Canada and one in Lichtenstein) in the company’s name. In the years 2006 through 2009, the amounts in those bank …

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Transfer tax and foreign items adjust for inflation in 2021

Transfer tax and foreign tax figures are among those that are adjusted annually for cost-of-living increases. Thomson Reuters Checkpoint has calculated these figures for the year 2021 using the chained Consumer Price Index from August 2020. Don’t miss: Reasonable compensation for S-Corporation shareholder employees The annual gift tax exclusion will remain at $15,000 and the …

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Dealing with a deceased relative’s debt

If a loved one dies, are you responsible for his or her unpaid debts? The FTC Consumer information website includes helpful information about dealing with the debts of a deceased relative. While FTC’s information is great – here’s my best advice: Check with an Attorney! An attorney can help you navigate the process and deal …

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