Good news, bad news. The Tax Court has approved a gift tax avoidance scheme, but there’s a catch. Continue reading
Under IRC §408(d)(8), IRA owners over age 70 ½ can distribute up to $100,000 per year directly to charity and never recognize any income on the distribution. But to get this benefit, you must act fast because the law expires at the end of this year. Continue reading
Tell It to the (Tax Court) Judge: If You Prefer District Court, Pay the Tax First and Then Ask for a Refund
Michael Jackson is back in the news. The IRS added some $700 million to the reported value of Jackson’s estate, based on posthumous publicity rights valued by the estate at $1200. The news brought to light an interesting issue: To get a regular trial with a district judge on a tax deficiency, you have to pay the tax first. Continue reading
Estate planners are taking a second look at portability—the use of a deceased spouse’s lifetime exclusion by the surviving spouse—now that the law on this subject has been made permanent. Continue reading
Filed under: Elder Law, Estate Planning, Legal Topics, Tax Law | Tagged: bypass trust, death tax, deceased spouse, Estate Planning, estate tax, lifetime exclusion, marital deducation, portability, wills and trusts | 5 Comments »
In a swift and decisive ruling, the IRS concluded that same-sex couples lawfully married in the state of celebration are married for federal tax purposes regardless of residence. Rev Rul 2013–17. The ruling effectively extends same-sex marriage to couples nationwide. Continue reading
Filed under: Estate Planning, Legal Topics, New Legal Developments, Tax Law | Tagged: DOMA, federal tax filing, federal tax return, IRS, IRS ruling, Rev Rul 2013–17, same-sex marriage | Leave a comment »
Most people feel really great when they donate to charity, and the accompanying tax deduction can make the gift even sweeter. But recent cases show that the IRS is demanding strict compliance with its rules on substantiating charitable contributions, and messing up can mean losing the entire deduction. Continue reading
Filed under: Business Law, Legal Topics, Tax Law | Tagged: charitable contributions, charitable deduction, charitable donation, charitable giving, IRS, qualified appraisal, qualified appraiser, tax deduction | 4 Comments »
Second Bite at the Apple: How Unregistered Domestic Partners (and Other Cotenants) Can Still Avoid Property Tax Reassessment
Do you own a house with someone and don’t want to register as domestic partners, but you still want an exclusion from a change in ownership for property tax purposes when you die? Now you can. Here’s how it works. Continue reading
Filed under: Estate Planning, Legal Topics, Real Property Law, Tax Law | Tagged: change in home ownership, coowner, cotenant, domestic partners, property tax, property tax reassessment, same-sex couples | 3 Comments »
The American Taxpayer Relief Act of 2012 (ATRA-2012) (Pub L 112-240, 126 Stat 2313) allows IRA owners to make retroactive direct distributions to charity for 2012. It could be a good deal for you or your clients, but you have to act by January 31, 2013—this week!—to take advantage of it.
Updated January 4, 2013: The American Taxpayer Relief Act of 2012 restores the original 3 percent phaseout of itemized deductions for income above $300,000 for married taxpayers filing jointly and $250,000 for single taxpayers. The Act also restores the 39.6 percent top rate for income above $450,000 for married taxpayers filing jointly and $400,000 for single taxpayers.
Most readers are aware that many provisions of the tax law “sunset” or expire at the end of 2012 if nothing happens before the end of the year. One little-noticed provision could help both sides move beyond the current impasse. Continue reading
Filed under: Estate Planning, Legal Topics, New Legal Developments, Tax Law | Tagged: American Taxpayer Relief Act of 2012, fiscal cliff, high-income taxpayers, Pease phase out, tax law, tax rates | 2 Comments »
Updated: The Supreme Court heard oral argument in Windsor v U.S. on March 27, 2013, with negative implications for domestic partners, as discussed in the April 2013 issue of CEB’s Estate Planning & California Probate Reporter.
The U. S. Supreme Court’s grant of review in Windsor v U.S. puts the marital deduction in doubt for same-sex surviving spouses but it doesn’t change the advice: for now, practitioners should keep filing estate tax returns claiming the marital deduction until someone tells them to stop. Continue reading
Filed under: Estate Planning, Family Law, Legal Topics, Tax Law | Tagged: DOMA, domestic partnerships, Estate Planning, estate tax, IRS, marital deduction, registered domestic parternships, same-sex marriage, Windsor | 8 Comments »