Taxpayers who receive gifts or bequests from certain individuals who gave up their U.S. citizenship or residency will be subject to tax under rules proposed by the IRS on Wednesday.
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TOPICS
Taxation of Estates & Trusts
Reporting Depreciation When Trusts Own Business Entities
Tax practitioners need to be aware of two special rules that apply to a nongrantor trust or estate that owns the passthrough entity.
Recent Developments in Estate Planning (Part 1)
This is the first part of a two-part article examining developments in estate, gift, and trust income tax between June 2014 and May 2015. Part 1 discusses gift and estate tax developments.
Final Rules Guide Use of Portable Estate Tax Exclusion
Final rules govern the requirements for electing portability of a deceased spouse’s unused exclusion amount to the surviving spouse and the rules for the surviving spouse’s use of that amount.
IRS Announces Delayed Due Date for New Estate Basis Reporting Rules
The IRS issued guidance delaying the due date for compliance with the recently enacted rules that require consistent basis reporting between an estate and anyone acquiring property from the estate.
New Law Imposes Immediate Estate Basis and Reporting Requirements
The highway funding bill made changes to the Internal Revenue Code that affect estates and beneficiaries, including new reporting rules.
Final Regulations Prevent Manipulation of Trust Uniform Basis Rules to Avoid Gain
The regulations are designed to prevent transactions in which trust grantors receive the value of their term interest without recognizing taxable gain.
Asset Protection Planning Legacy Trusts: Ohio’s New Model Law
This item addresses basic asset protection issues and describes Ohio’s new asset-protection trust statute.
IRS Issues Final Portability Rules for Estate Tax Exemptions
The IRS issued final rules governing the requirements for electing portability of a deceased spousal unused exclusion amount to the surviving spouse and the rules for the surviving spouse’s use of the amount.
IRS Should Make Portability Elections Easier, AICPA Says
AICPA Tax Executive Committee chair requested that the IRS provide relief to surviving spouses who want to elect portability of the deceased spouse’s unused estate tax exemption (DSUE) amount.
Gifts to Trust Qualify for Annual Exclusion
The Tax Court held that the withdrawal rights provided in a trust declaration were not illusory and that therefore a married couple’s gifts to the trust were gifts of present interests in property that qualified for the annual exclusion.
Basis Rules for Estates of 2010 Decedents Proposed
Proposed regulations would apply to decedents who died in 2010 and whose executors elected under Sec. 1022 to not have the retroactively reinstated estate tax apply to the decedents’ estates.
Strategies for Minimizing the Impact of Income in Respect of a Decedent
This item discusses issues created by income in respect of a decedent and presents strategies and planning insights to assist taxpayers and their tax advisers with minimizing its impact.
AICPA Asks IRS for Portability Relief for Surviving Spouses
The AICPA requested that the IRS provide relief to surviving spouses who want to elect portability of the deceased spouse’s unused estate tax exemption amount.
Using a Crummey Trust to Preserve Gift Tax Exclusion
In the typical Crummey trust, a periodic contribution of assets to the trust is accompanied by an immediate withdrawal power that gives the beneficiary the right to withdraw the contribution for a limited time.
The Impact of the Net Investment Income Tax on Estates and Trusts
This article describes the calculation of the Sec. 1411 net investment income tax on estates and trusts, demonstrating that the additional complexity and burden of the tax may give tax professionals pause in advising that a trust is a viable means for accumulating and preserving wealth from one generation to the next.
2015 Inflation-Adjusted Items and Tax Tables Issued
The IRS issued the annual inflation adjustments for 2015 for more than 40 tax provisions as well as the 2015 tax rate tables for individuals and estates and trusts.
Trust Material Participation and the Sec. 469(h) “Regular, Continuous, and Substantial” Standard
Earlier this year, the Tax Court held that a trust qualified for the Sec. 469(c)(7) real estate professional exception and materially participated in its rental real estate business under Sec. 469(h) through the activities of its trustees.This item focuses on the material participation portion of the decision.
Keeping Up With Increasingly Mobile Clients: Navigating U.S. Tax Reporting for U.S. Persons With Ties to Foreign Trusts
Despite the significant efforts of tax advisers to ensure their U.S. clients understand and comply with required tax and information-reporting forms on U.S. trust relationships, all too often transactions go unreported, even though penalties in these cases can be quite severe.
Recent Developments in Estate Planning: Part 2
This is the second in a two-part article examining developments in estate, gift, and generation-skipping transfer tax and trust income tax between June 2013 and May 2014. This article covers trust developments, the taxation of trusts under the new 3.8% net investment income tax, President Barack Obama’s estate and gift tax proposals, and inflation adjustments for 2014.
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.
