Gift tax exclusion, estate and gift exemption rise in 2018

The IRS announced in Revenue Procedure 2017-58 that the gift tax exclusion will rise to $15,000 in 2018. The 2017 exclusion of $14,000 has been in place since 2013. Using the annual gift tax exclusion, in 2018 any person can gift up to $15,000 to another person without using any of his/her lifetime estate and …

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Recent Gift (on or after June 17, 2008) from an Expatriate?

Typically, the person who receives the gift doesn’t have to worry about the tax, because that tax liability typically falls on the donor. Well, if the donor happens to be a covered expatriate then that tax liability may now land on you with the new IRS proposed regulation (REG-112997-10). This regulation deals with gifts or …

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99.7% of Estates Are Not Subject to Federal Tax

The American Taxpayer Relief Act of 2012 (“Act”) increased tax exemptions for federal estates, gifting and generation skipping trusts (GST). The Act also escalated the aforesaid exemptions each year for inflation. Below is a summary of the 2015 status of the three exclusions along with the ceiling for the federal estate tax rate applicable to …

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Will Your 2012 Gift Tax Return be Audited by the IRS?

In 2012 taxpayers and their advisers were scratching their heads about the presidential election and its impact on future gift and estate tax exemptions because the $5 million inflation indexed per person federal estate and gift tax exclusion was scheduled to drop to $1 million on January 1, 2013. Consequently, many wealthy matriarchs and patriarchs …

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In Federal Tax Court Your Report Is Your Testimony

The level of detail and the manner of explanation in a valuation report for tax compliance purposes is extremely important as the report serves as the expert’s direct testimony in Federal Tax Court. It’s interesting to observe the important steps that families take to protect their assets – hiring top wealth management teams, tax consultants, …

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The Importance of Gifting in 2012

Gary Ringel was recently featured as a guest on What About Wealth? Internet broadcast on August 7, 2012.  What About Wealth? is a live Internet radio program and syndicated podcast on VoiceAmerica Business Channel hosted by Rich Bloomfield and Rick Durfee.  The subject of the broadcast was the latest news on gifting opportunities and the …

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8 Essential Elements of an Exit Strategy for Business Owners: Part I

At some point in time, every business owner will need to transition their business to new owners, which could be a business partner or management buy out, a transfer to family members or an outright sale of the business on the open market.  Regardless of the expected exit strategy, every business and business-owner should probably …

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Step Transaction Doctrine

A recent case in the federal district court highlights the need to have some time elapse between the date of formation and funding of an FLP or FLLC and the date of gifting of interests in the FLP/FLLC. In Heckerman v U.S., the taxpayers (David and Susan Heckerman) took the following steps in gifting of …

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