Wealth Strategies Journal

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Month: August 2017 (page 1 of 3)

Commentary.Omnibus.2017.08.29: Using Disclaimers; Robot Led Funerals, Reverse Veil Piercing and More

  • How to Use Trust Disclaimers in Estate Planning.  When considering drafting a will or trust document, testators and settlors typically seek out the professional advice of an attorney. This stems from the fact that lawyers are the only persons legally allowed to perform many of the tasks required…
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310 Retail LLC et al. v. Commissioner: Deed Contemporaneous Written Acknowledgment of Conservation Easement

In 310 Retail, LLC, Zeller-310, LLC, Tax Matters Partner v. Commissioner, the Tax Court granted an LLC’s partial motion for summary judgment in a conservation easement case, finding that the donee executed a deed of easement contemporaneously with the gift, and that the deed satisfied the contemporaneous written acknowledgement requirement … Continue reading

Fiscalini v. Commissioner: Court Finds Part Gift Part Sale in Home Transfer

The Tax Court, in Fiscalini v. Commissioner, T.C. Memo 2017-163,  sustained an addition to tax and a penalty, holding that the taxpayer  must recognize capital gain from the sale of his home to his parents, finding that his adjusted basis should include his parents’ basis in their interest they gifted … Continue reading

Estate Not Allowed a Deduction for Unpaid Gift Tax Related to a Net Gift 

Ed Zollars summarizes Estate of Sheldon Summers, where the Tax Court disallowed a deduction for unpaid gift tax related to a net gift.  Ed Zollars’ summary begins as follows:

When a taxpayer has made a “net gift” within three years of the taxpayer’s death, how is that gift handled

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Avrahami v. Commissioner: Tax Court Disallows Captive Insurance Premium Deductions

In Avrahami v. Commissioner, 149 TC No. 7  (Aug. 21, 2017), the Tax Court disallowed a couple’s insurance premium deductions for amounts paid to a purported captive insurance company, finding that the entity was not an insurance company.  The Tax Court also held the couple liable for taxes on unreported … Continue reading

Estate of Sheldon Summers v. Commissioner: Gift Tax Due at Death Not Deductible + Apportionment of Estate Tax Under NJ Law Not Allowed

The Tax Court, in Estate of Sheldon Summers v. Commissioner, 149 T.C. No. 8 (Aug. 22, 2017),  with Judge Halpern writing the opinion, held that an estate was not entitled to deduct the gift tax owed at the time of a decedent’s death for gifts made to the decedent’s nieces, … Continue reading

ILM 201733012: IRS Addresses Annuity Contracts as Life Insurance Reserve Items

In ILM 201733012, the IRS concluded that the facts were insufficient to establish whether the reserves for an insurance company’s annuity contracts constituted life insurance reserves, but if the those amounts are not life insurance reserves, they are included in the “total reserves” in determining whether the taxpayer is a … Continue reading

Calvin H. Johnson, Cut Negative Tax Out of Step Up at Death

Calvin H. Johnson, John T. Kipp Chair in Corporate and Business Law at the University of Texas Law School, has published his article, Cut Negative Tax Out of Step Up at Death.  The Abstract is as follows:

In this article, Johnson argues that Congress should exclude double deductions and negative taxes

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IRS Releases OVDP Streamlined Program Hotline Guide to Tax Analysts

Tax Analysts has obtained, via a FOIA request, the current hotline guide to IRS questions and interpretations of the rules governing its offshore voluntary disclosure program and its streamlined filing compliance procedures.

According to Tax Notes, in the undated 30-page document , the IRS addresses many issues, including those involving … Continue reading

Deloitte Survey of Tax Executives: Tax Reform in 2017 – Not Going to Happen

Deloitte surveyed tax executives and the result is deep pessimism about tax reform happening in 2017 along the lines promised by politicians.  The survey, reported by Reuters and picked up by several news agencies begins as follows:

Only a small number of U.S. tax, finance and business professionals expect President

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Where Should I Die? State and Federal Estate Tax Considerations, by Michaele Morrow & Mitchell Franklin

Professors Mitchell Franklin & Michaele L. Morrow has published their article, Where Should I Die? State and Federal Estate Tax Considerations, in Tax Notes.  The Abstract is as follows:

In this article, Franklin and Morrow discuss the history of the federal estate tax and examine how its repeal might interact with

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Commentary.Omnibus.2017.08.14: Americans Not Paying Estimated Taxes; Estate Planning Not Just for the Rich; Fiduciary Cases; Are Trusts Still Useful If Estate Tax Repealed; New IRS Criminal Tax Initiatives

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Thanks, Congress. Wealthy investors hold off on estate tax planning

CNBC Personal Finance is reporting what estate planners already know, namely that wealthy investors are holding off on estate planning while they wait and see what Congress will do with the estate tax.  CNBC’s report begins as follows:

Thanks, Congress. Wealthy investors hold off on estate tax planning The estate

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Owens v. Commissioner, T.C. Memo. 2017-157: Tax Court Allows Taxpayer $9.5 million bad debt deduction as business bad debt deduction

In Owens v. Commissioner, TC Memo 2017-157, the Tax Court held that a  $9.5 million bad deduction could be claimed as a business bad debt.  The taxpayer argued that he was in the trade or business of lending money. Conversely, the IRS argued that the taxpayer was not  in the … Continue reading

Probate Funding and the Litigation Funding Debate by Jeremy Kidd

Jeremy Kidd, Mercer University – Walter F. George School of Law, has made available for download his article, “Probate Funding and the Litigation Funding Debate.”   The Abstract is as follows:

Third-party funding of legal claims is becoming more common, and has been quietly gaining a foothold in the probate arena. Probate

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