This article examines developments in estate, gift, and generation-skipping transfer (GST) tax and trust income tax between June 2012 and May 2013.
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TOPICS
Taxation of Estates & Trusts
Alternatives to Form 1041 for Grantor Trusts
For most grantor trusts, filing Form 1041 is optional. Described in this item are alternative methods of reporting and the situations when an alternative reporting method is available.
IRS Releases Draft Net Investment Income Tax Form
The IRS released a draft of Form 8960, a new dual-purpose form that will be used by individuals and trusts and estates to compute the new 3.8% net investment income tax.
IRS Once Again Confirms Unfavorable Position on Material Participation Standard for Trusts
Sec. 1411(a)(2) imposes a tax of 3.8% on estates and trusts on the lesser of their undistributed net investment income or the excess of their adjusted gross income over the dollar amount at which the highest tax bracket in Sec. 1(e) begins for the tax year.
Planning for the “Parallel Universe” of the Net Investment Income Tax
This article examines how to determine the new surtax on net investment income that, like alternative minimum taxable income, effectively creates another tax base in addition to taxable income.
Supreme Court Strikes Down Defense of Marriage Act in Estate Tax Case
The Supreme Court held that the Defense of Marriage Act (DOMA) is unconstitutional because it violates the Fifth Amendment’s Due Process Clause
AICPA Recommends Changes to Net Investment Income Tax
The AICPA submitted comments to the IRS recommending many changes to the proposed regulations on the new net investment income tax.
Applying the New Net Investment Income Tax to Trusts and Estates
This article discusses how the new 3.8% net investment tax applies to trusts and estates.
A Look at the Estate Tax Provisions in the President’s FY 2014 Budget Proposal
The president’s recently released FY 2014 proposed budget contains a number of estate, gift, and generation-skipping transfer (GST) tax proposals.
Incorrect Expert Advice About Estate Return Filing Deadline Does Not Excuse Penalty
An executor who relied on his accountant’s mistaken advice that he had obtained a one-year extension of the filing due date for Form 706 was nonetheless liable for a large late-filing penalty.
New Decanting Statutes Offer Road Map for Escaping Fiduciary Tax and Updating Trust Terms
As trust decanting statutes proliferate, federal and state taxing authorities must wrestle with the income, estate, and gift tax issues raised by decanting.
Prop. Regs. Govern 3.8% Net Investment Income Tax
The IRS released proposed regulations governing the 3.8% net investment income tax imposed under Sec. 1411.
Formula Clauses: Adjusting Property Transfers to Eliminate Tax
Dispository documents involving lifetime gifts or testamentary bequests often include formula clauses to designate the value of property passing by gift or bequest.
Tax Tables, Other Inflation Adjustments, Issued for 2013
The IRS issued inflation-adjusted items for 2013 as well as the new income tax rate tables now in effect as a result of the American Taxpayer Relief Act.
Reporting Trust and Estate Distributions to Foreign Beneficiaries (Part II)
This two-part article explains the computations, payment, and reporting requirements for U.S. trust and estate distributions to foreign beneficiaries.
Form 706 and Instructions Provide Guidance on Portability Election
The IRS posted Form 706 and its final instructions, which provide guidance for electing the portability of a deceased spouse’s unused estate and gift tax exclusion amount and for the executor’s use of the check box to opt out of electing portability of the unused portion of the exclusion amount.
Reporting Trust and Estate Distributions to Foreign Beneficiaries (Part I)
This article explains the procedures and tax compliance issues that fiduciaries face before domestic trust or estate distributions are paid or allocated to foreign beneficiaries.
Inflation Adjustments for 2013
The IRS released its annual revenue procedure making inflation adjustments to the gift tax annual exclusion and other items for tax years beginning in 2013.
Gift and Estate Tax Planning Considerations
With thoughtful planning, taxpayers can minimize gift and estate taxes while retaining some control of transferred assets by establishing trusts or limited partnerships and using the annual gift tax exclusion.
Advising Nonresidents and Recent U.S. Residents on Estate Tax Issues
Understanding the intricacies of residency and domicile is necessary to understand what will be included in a decedent’s estate for U.S. estate tax purposes.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
