Estate Tax

TOPICS / ESTATES

June 1, 2008

IRS Issues Prop. Regs. in Response to Kohler Case

The IRS has issued proposed regulations clarifying that under Sec. 2032 an estate may take into account a reduction in the value of the gross estate following the decedent’s death in determining the value of the estate on the alternate valuation date if the reduction is due to market conditions but not other post-death events.

June 1, 2008

Handling Gifts and Bequests of LLC Interests

The gift of an LLC interest generally does not result in the recognition of gain or loss by the donor or the donee.

January 1, 2008

Service Changes Policy on Estate Tax Installment Payments

The Service will determine on a case-by-case basis whether security will be required when a qualifying estate elects under Sec. 6166 to pay all or a part of the estate tax in installments.

January 1, 2008

Ninth Circuit Affirms Transferred Residential Property Must Be Included in Gross Estate

The Ninth Circuit ruled that the full fair market value of residential property must be included in the decedent’s gross estate, finding that the decedent retained income and economic enjoyment from the property and that the inter vivos transfer of the property was not a bona fide sale for adequate and full consideration under Sec. 2036(a).

December 1, 2007

Private Annuities Can Still Save Estate Taxes

Editor: Michael D. Koppel, CPA, PFS In October 2006, the IRS issued Prop. Regs. Secs. 1.72-6(e) and 1.1001-1(j), which propose to substantially reduce the income tax benefits of private annuities (REG-141901-05). Basically, the proposed regulations require the annuitant (the person transferring the property) to recognize the entire gain or loss

September 1, 2007