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Est. of Sower v. Commissioner: IRS Allowed to Examine Predeceased Spouse’s Estate Tax Return

In Estate of Minnie Lynn Sower v. Commissioner, , 149 T.C. No. 11 (Sept. 11, 2017), the Tax Court held that the IRS could examine a predeceased spouse’s estate tax return to determine the deceased spousal unused exclusion (DSUE) amount available to the surviving spouse’s estate, finding that the statute … Continue reading

IRS Security Recommendation: Make Data Security an Everyday Priority; Key Steps Can Help 

The IRS, state tax agencies and the tax industry today urged tax professionals to make data security an everyday priority, noting a few simple steps can go far in protecting taxpayer information from cybercriminals.

Cybersecurity experts often refer to the 90/10 rule. This rule states that 10% of cybersecurity is … Continue reading

IRS Publication 4221-PF, Compliance Guide for 501(c)(3) Private Foundations Released

The IRS has released Publication 4221-PF (rev. Aug. 2014), “Compliance Guide for 501(c)(3) Private Foundations,” which explains the different types of private foundations, activities that could jeopardize a tax-exempt status, what federal information and tax returns private foundations must file, and required public disclosures, among other things.

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Brodnax & Klein, The Path to Immediate Tax Benefits in Commercial Real Estate, Tax Notes

Frank Brodnax and Travis Klein, of Ellin & Tucker, have authored an article,  The Path to Immediate Tax Benefits in Commercial Real Estate in Tax Notes, which discusses how commercial real estate clients can benefit from the 50 percent bonus depreciation on 39-year property, and they outline planning tools and … Continue reading

PLR 201735009: Judicial Construction of Trust Does Not Cause Lost of GST Exempt Status

In PLR 201735009, the IRS ruled that modifications and a judicial construction of a trust do not cause the trust to lose its generation-skipping transfer tax exempt
status under Code section 2601.

See ful PLR 201735009 by clicking here. 

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.… Continue reading

PLR 201735005: Inadvertent Tax Payments Not Constructive Trust Additions

In PLR 201735005, the IRS ruled that a trust beneficiary’s inadvertent payment and subsequent reimbursement of federal and state income taxes on trust income do not constitute constructive additions to the trust, will not cause any part of the trust to be includable in his gross estate, and will not … Continue reading

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

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