Real estate has been a great investment. In addition to the potential for appreciation of the property, it may also have the added benefit of producing rental or other income. Real estate can also have income tax advantages. This can help reduce one’s income tax liability during their peak earning years. Many taxpayers buy real… Continue reading Court Recasts Gift of LLC Interests
Category: Estate & Gift
About Estate & Gift Taxes
The estate and gift taxes have been in flux for many decades. The one thing that is constant is that the taxpayers who pay estate and gift taxes pay a lot of taxes. The estate and gift tax rates are high.
The estate and gift tax rates are and always have been excessively high. This is why planning is needed to avoid these taxes.
From advanced estate planning techniques to outright tax savings techniques, we can help clients with estate and gift tax questions or issues like few other firms.
Avoiding Gift Taxes With Formula Clauses
Congress has slowly upped the amount that can be transferred free of estate and gift taxes. This amount has changed over time. It was $1 million in 2003. It is now just over $11.5 million in 2020. This means that many people do not need to worry about estate and gift taxes. Estate and gift… Continue reading Avoiding Gift Taxes With Formula Clauses
Can the IRS Collect Gift Tax From Recipient After 14 Years?
If someone gives you property and then dies and more than ten years has passed since the gift, can the IRS sue you to collect the amount of the gift from you? Most would think the answer is a resounding “no,” as the recipient isn’t liable for unpaid gift taxes and the statute of limitations… Continue reading Can the IRS Collect Gift Tax From Recipient After 14 Years?
Can Defective Deed Defeat IRS Estate Tax Lien?
The IRS lien is broad and attaches to the taxpayer’s property. Creative tax attorneys have tried to find ways around the lien with limited success. The recent Saccullo v. United States, No. 17-14546 (11th Cir. 2019) case raises the question as to whether a defectively executed deed be used to defeat the IRS’s estate tax… Continue reading Can Defective Deed Defeat IRS Estate Tax Lien?
Tax Benefit Rule & Transfers at Death
A sole proprietor incurred a business expense. He dies in the same year. The business expense was for property that would last more than one year. Does the business owner’s estate have to report the amount of the deduction as income? This question is answered by considering the tax benefit rule. The court addressed this… Continue reading Tax Benefit Rule & Transfers at Death
IRS Estate Tax Liens: Helpful or Harmful?
It can take years, if not decades, to resolve property disputes resulting after someone dies. The IRS is often not a direct party to these disputes, but it usually has an interest in what happens to the property. The IRS uses the general unfiled estate tax lien to protect its interest in a decedent’s assets. While… Continue reading IRS Estate Tax Liens: Helpful or Harmful?
Estate Tax Valuation vs. Income Tax Valuation
The question in Janis v. Commissioner is whether a taxpayer can claim that property has a low value for estate tax purposes and then turn around and claim that the property has a high value for income tax purposes. The Ninth Circuit said “no,” but the answer could have been different under slightly different facts.… Continue reading Estate Tax Valuation vs. Income Tax Valuation
Estate Plans in Uncertain Times
With 2006 fast approaching I can’t help but pause to think about our estate and gift tax regime. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 changed the rules of the game. Following the enactment of EGTRRA estate planners and tax attorneys went to work defining and clarifying how estate plans should… Continue reading Estate Plans in Uncertain Times
Basic Estate Administration and Taxes: Elections & Timing
This post is written to remind non-tax attorneys who administer estates of a few basic tax issues that must be considered in administering estates. From a tax perspective, estate administration is all about making elections and timing distributions, income and expenses. IRC 441 The first group of elections involves selecting tax years. IRC § 441… Continue reading Basic Estate Administration and Taxes: Elections & Timing