Will this Estate Planning Loophole be Closed?

On August 2, 2016 the U.S government proposed making it harder for wealthy business owners to transfer assets to heirs without paying estate and gift taxes. The Treasury Department’s plan would place new limits on a common tactic used to transfer interests in illiquid businesses. “By taking advantage of these tactics, certain taxpayers or their …

Keep Reading

Trusts: Fully Deductible Expenses vs AGI Limit

Generally, miscellaneous itemized deductions may be deducted to the extent they exceed 2% of adjusted gross income (AGI). Miscellaneous itemized deductions can include tax preparation fees, investment fees, estate planning legal fees, and safe deposit box charges, to name a few. The same idea applies for estates and trusts, with some exceptions. And the exceptions …

Keep Reading

Exemption for Estate and Gift Tax Rises to $5,450,000 in 2016

The IRS released the 2016 estate and gift tax amounts and due to the very low inflation rate, the 2016 numbers were very similar to the 2015 amounts. In Revenue Procedure 2015-53, the IRS calculates the unified estate tax exclusion for decedents dying in 2016 and the gift tax lifetime exclusion will rise to $5,450,000. …

Keep Reading

Inherited Property Reporting Now Extended to February 29, 2016

Under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 which was signed into law on July 31, 2015, the executor of an estate required to file an estate tax return under Code Sec. 6018(a) or (b) must provide a statement identifying the value of the property reported on the estate tax …

Keep Reading