Estate, Gift Tax Exemption Expected to Rise in 2017

While the IRS has not yet released the new amounts for 2017, Thomson Reuters has calculated the unified estate tax exclusion for decedents dying in 2017 and the gift tax lifetime exclusion for 2017 will rise to $5,490,000. This is a small increase of $40,000 from the 2016 amount of $5,450,000. The 2017 gift tax …

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An Easier, Cheaper 60 Day Rollover Waiver

The IRS has had a major change of heart that is good for taxpayers. They recently issued Revenue Procedure 2016-47 which established a “self-certification” procedure enabling a taxpayer to complete a retirement plan rollover (despite missing the 60-day deadline) by certifying to the administrator of the recipient plan or IRA that the deadline was missed …

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Fiduciary Access to Digital Assets and Accounts

Think about the number of online accounts you have. There are social media accounts, financial accounts, e-mail accounts, cloud storage accounts, membership or professional accounts, music accounts and many others. Online accounts require less physical storage space, allow the user to access the account anywhere he or she has an internet connection and sometimes even …

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Irrevocable Trust v QPRT: Part II

Part 2 discusses additional tax and non-tax reasons why putting your personal residence in an irrevocable trust (that is not a QPRT) is bad planning. Loss of basis step up on death ~  Since Arizona is a community property state, assets held and/or titled as community property receive a full step up (down) in basis …

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What Beneficiaries Need to know for Form 8971

In the past, beneficiaries who sold inherited assets may have reported different (higher) values of assets than what was originally reported on the estate tax return. To stop this, the IRS issued proposed and temporary regulations that now require a beneficiary’s basis in certain property acquired from a decedent be consistent with the value of …

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What executors need to know for Form 8971

An executor who is required to file a federal estate tax return (Form 706) is also required to file the new Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent, with the IRS to report the final value of that property, the recipient of that property, and other information prescribed by the form and …

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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 …

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Gift Stock to Help a Loved One – 0% Rate Tip

Do you have a loved one that may be in school, struggling with student loans, or buying a house? Yes? No? To be honest it doesn’t matter, because for this tax savings gifting tip, you don’t need a “qualified” reason or any reason at all! You can simply gift stock, help a loved one out …

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Happy (for Some) 100th Anniversary to the Estate Tax

Back in 1916, Congress wanted to boost U.S. revenues in case America joined in on World War I in Europe. Lawmakers voted for a new tax on a person’s assets at death, which we now call the Estate Tax aka “Death Tax”. This tax affected fewer than 1% of Americans and today only affects 2 …

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What Prince’s Death Teaches Us about Estate Tax

Prince Rogers Nelson, American singer, songwriter, and actor, passed away on April 21, 2016. Cities, social media, and fans showed their support and solidarity in a sea of purple. Prince resided in Minnesota at the time of his death. As of the date of this posting, no Will has been presented to the Carver County …

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