In a report released in May 2009, the U.S. Department of Agriculture analyzed changes over the past 10 years to Federal individual and business income tax provisions and found that the cumulative effect of these changes has resulted in the lowest...
Continue reading "USDA Report Finds That Farms Have Lowest Tax Rates in a Decade"
On November 19, 2009, Representative Earl Pomeroy, D-N.D., introduced H.R. 4154, which would repeal the new carryover basis rules and retain the estate tax with a $3,500,000 exemption. Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal....
Continue reading "House Bill Would Repeal New Estate Tax Carryover Basis Rules"
On November 17, 2009, Senator Thomas Carper, D-Del., introduced S. 2784, which would permanently extend the estate tax as in effect in 2009. Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal....
Continue reading "Senate Bill Would Permanently Extend 2009 Estate Tax Law"
Meg Shreve of Tax Analysts reports on the agricultural lobbyists seeking an exemption for farm and ranch land fom the estate tax: Extension of current law isn't good enough," said Patricia Wolff, director of public policy for the American Farm...
Continue reading "Agriculture Lobbyists Seek Exemption for Farm and Ranch Land From Estate Tax"
Tax Notes has published IRS e-mailed advice that provides guidance on the taxation of an electing small business trust (ESBT). According to the e-mail, taxation of an ESBT is contingent on form of the assets it holds under section 641(c). See...
Continue reading "IRS E-Mail Correspondence: Guidance on Taxation of Electing Small Business Trust"
In PLR 200948001, the IRS ruled that the proceeds of two whole life insurance policies received by a limited partnership on a taxpayer's death will not be included in the taxpayer's gross estate under sections 2042 and 2035(a) if the...
The Tax Policy Center of the Urban Institute and the Brookings Institution, has released estimates on gross estate and net estate tax distribution for 2010 based on a $3.5 million exemption and 45 percent rate, and a $5 million exemption...
Continue reading "Tax Policy Center Releases Estimates for 2010 Estate Tax Distributions "
Chuck O'Toole of Tax Analysts reports: The House Ways and Means Committee will likely approve renewals of the full set of so-called tax extenders, panel Chair Charles B. Rangel, D-N.Y., told reporters November 19. Rangel said he was embarrassed...
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The Heritage Foundation has published "Estate Tax a Killer for Family-Owned Businesses and Their Workers," by Curtis S. Dubay. In his article Dubay argues: "The death tax is a drag on America's family-owned businesses, destroys jobs, and lowers wages while...
In PLR 200947003, the IRS granted an individual an extension to allocate his available GST exemption to transfers to several trusts based on the gift tax values of those transfers. The IRS also ruled that under section 2632(e), the individual's wife's GST exemption was...
Continue reading "PLR 200947003: Extension Granted to Allocate GST Exemption"
The IRS announced today that interest rates for the calendar quarter beginning January 1, 2010, will remain the same. The rates will be: Four (4) percent for overpayments [three (3) percent in the case of a corporation]; Four (4) percent for underpayments;...
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The IRS issued proposed regulations today under the new Housing Assistance Tax Act of 2008 that, starting in 2011, banks and third party settlement organizations must report the gross amount of payment card and third-party network transactions each year to participating merchants and the IRS. ...
Continue reading "IRS Issues Proposed Regulations On Payment Card Transaction Reporting"
In PLR 200947006, the IRS ruled that the proceeds of two whole life insurance policies received by a limited partnership on a taxpayer's death will not be included in the taxpayer's gross estate under sections 2042 and 2035(a) if the...
In PLR 200947021, the IRS ruled that income from a trust providing health and welfare benefits to retired state employees is excludable from gross income under section 115. In addition, the IRS ruled that trust payments used exclusively to pay...
Continue reading "PLR 200947021: Trust Income Exempt of Essential Government Function"
The United States Tax Court has published a memorandum opinion by Judge Julian I. Jacobs, a U.S. Tax Court Judge, entitled "Estate of Gertrude M. Ball et al. v. Commissioner of Internal Revenue." Normal 0 false false false MicrosoftInternetExplorer4 /*...
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of the final Section 2053 Regulations:Final regulations (effective for decedents dying after October 19, 2009) continue the general concept in proposed regulations of allowing an estate tax deduction under...
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The Treasury Department, acting on behalf of the IRS, has submitted various forms and regulations to the OMB for review and clearance. Comments addressed to the OMB are due by December 16, 2009. See 2009 Tax Notes 219-25 (November 10,...
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Tax Notes has published IRS e-mailed advice that gave guidance on a revocable trust question, advising that the issue likely varies on a state-by-state basis. See 2009 Tax Notes 218-81 (November 13, 2009)Posted by Jessica DiLorenzo, Associate Editor, Wealth Strategies...
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In PLR200946027, the IRS has granted cotrustees of a marital trust an extension to make an election to treat the martial trust as two separate trusts. Posted by Jessica DiLorenzo, Associate Editor, Wealth Strategies Journal....
Continue reading "PLR200946027: Extension Granted to Treat Marital Trust as Separate Trusts"
In PLR200946001, the IRS granted an individual an extension to allocate his available generation-skipping transfer tax exemption to a transfer of trust. Posted by Jessica DiLorenzo, Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 200946001: Extension Granted to Allocate GSTT Exemption"
In PLR200946028, the IRS ruled that the income from a trust created by a public utility to provide medical benefits to eligible retirees and their dependents is excludable from gross income under section 115(1) because the income is derived from...
In PLR200946010, the IRS ruled that income from a trust providing health and welfare benefits to retired state employees is excludable from gross income under section 115 and that trust contributions and amounts for group-term life insurance provided through the...
Michael J. Melloy, a judge serving on the United States Court of Appeals for the Eighth Circuit, determined that a partial disclaimer was valid as to an amount that passed to a foundation named as a contingent beneficiary in decedent's...
Tax Notes has published an article by Jeremiah Coder. The article examines Kyle Martin's, a supervisory estate tax attorney with the IRS, proposition that the IRS is putting a renewed focus on its nonfiled gift tax return program. He said...
The IRS will be hosting a webinar on November 18 titled "E-File: Building the Case," available at 10 a.m., 1 p.m. or 4 p.m. EST. Enrolled agents receive one CPE credit for participating for a minimum of 50 minutes from...
The IRS has released several pronouncements regarding the first-time home buyer credit which are as follows:Wife is eligible for first-time home buyer credit for home purchased from in-laws.Mobile home qualifies as principal residence under first-time home buyer credit rules.Individual not...
Continue reading "IRS Information Letters: First-time Home Buyer Credit"
Tax Notes published an article by Stephen B. Cohen, a professor at Georgetown University Law Center. The article rebuts Prof. Douglas Kahn's arguments that Chief Justice Roberts was correct in his criticism of Judge Sotomayor's opinion in the Knight case....
Continue reading "Tax Notes Article by Stephen B. Cohen: "Whom Do You Trust? A Reply to Prof. Kahn""
In PLR 200945011, the IRS ruled that the division of a decedent's late husband's IRA into sub-IRAs for the decedent's beneficiaries would not constitute a transfer under section 691(a)(2), distributions under section 408(a)(1), or rollovers under section 408(d)(3). Posted by...
Continue reading "PLR 200945011: IRS Rules on Tax Consequences of Proposed IRA Division"
In PLR 200945003, the IRS has granted an individual an extension to allocate her available generation-skipping transfer tax exemption to a transfer to a trust. Posted by Jessica DiLorenzo, Associate Editor, Wealth Strategies Journal. ...
Continue reading "PLR 200945003: Extension Granted to Allocate GSTT Exemption"
Tax Notes has published an article by William W. Beach of the Heritage Foundation. The article argues for Members of Congress to repeal federal death taxes by proposing seven principal reasons. See William W. Beach, "Seven Reasons Why Congress Should...
The Wealth Strategies Journal is proud to announce that it is co-hosting its first seminar with Sandford ("Sandy") J. Schlesinger, a member of the Wealth Strategies Journal Advisory Board, as speaker. Please find below an invitation to the seminar on Estate Planning...
