The IRS removed a prohibition on making a qualified terminable interest property (QTIP) election when the election would have been null and void because the estate had a zero estate tax liability.
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TOPICS
Taxation of Estates & Trusts
Recent Developments in Estate Planning: Part 1
This is the first in a two-part series examining developments in estate, gift, and generation-skipping transfer tax and trust income tax. Part 1 discusses legislative and gift and estate tax developments.
How the COD Rules Apply to Grantor Trusts and Disregarded Entities
New regulations provide rules for determining
who is the “taxpayer” for purposes of applying the Sec. 108 discharge-of-indebtedness rules to a grantor trust or disregarded entity.
Proposed Regulations Would Affect Estate Valuation Discounts
The IRS issued long-awaited proposed regulations designed to prevent taxpayers from lowering the estate and gift tax value of transferred assets.
Post Initial Trust Term QPRT Considerations
The end of a QPRT’s initial trust term brings with it many potential issues.
Final Regulations Clarify COD Rules for Grantor Trusts and Disregarded Entities
The IRS finalized regulations that provide rules for determining who is the “taxpayer” for purposes of applying the Sec. 108 discharge-of-indebtedness rules to a grantor trust or disregarded entity.
Post-Death Events Taken Into Account in Property Valuation
The Tax Court held that the IRS had properly taken into account events that occurred after the decedent’s death in determining the value of property for purposes of an estate’s charitable deduction.
Proposed Regulations Govern Estate Basis Consistency Reporting
The regulations provide rules regarding the consistent basis reporting requirement and the required statement that must be furnished to the IRS and beneficiaries.
Executor Not Liable as Fiduciary for Unpaid Estate Tax
Practitioners who assist clients with preparing estate tax returns should make sure that they know the very real danger they face if distributions are made from the estate before all the federal estate taxes are paid.
Gifts of Partnership Interests
If the general partner has unfettered discretion to make or withhold distributions, any gift of an interest in the partnership may be treated as a gift of a future interest not qualifying for the annual gift tax exclusion.
Using Cost Segregation in Estate Planning
Many tax professionals overlook the opportunity to manage the decedent’s original tax basis for real estate assets that are recorded on their tax depreciation schedule before death.
Estates Have Until June 30 to File Estate Basis Form
The IRS announced one last postponement in the due date for filing under rules requiring reporting of the value of an estate’s assets to the IRS and beneficiaries.
Estate Basis Consistency Reporting Rules Are Proposed
The regulations reiterate the delayed reporting deadline of March 31, 2016.
Due Date for Estate Basis Reporting Postponed Once Again
The IRS further postponed the due date for the new reporting requirement, under which estates must report the value of estate assets to the IRS and to beneficiaries.
Source of Consideration for Transfer Not Relevant in Gift Analysis
The Tax Court held that a transfer for adequate consideration was not a gift
2016 Tax Tables and Inflation Adjustments Are Released
The IRS issued the annual inflation adjustments
for 2016 for more than 50 tax provisions as well as the 2016 tax rate tables for individuals and estates and trusts.
Consider Combining the Tax Benefits of a Preferred Family Limited Partnership With a GRAT
Certain high-net-worth clients might achieve better results by using a preferred family
limited partnership rather than
an intentionally defective grantor trust or a grantor retained annuity trust.
Is an Anomaly in Form 8960 Resulting in an Unintended Tax on Tax-Exempt Income?
This article provides an overview of the net investment income tax calculations for individuals and trusts.
Rules Are Proposed on Sec. 2801 Tax on Gifts and Bequests From Expatriates
Taxpayers who receive gifts or bequests from individuals who gave up U.S. citizenship or residency will be subject to tax under proposed rules.
Recent Developments in Estate Planning (Part 2)
This is the second of a two-part article examining developments in estate, gift, trust, and generation-skipping transfer taxes between June 2014 and May 2015.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
