Gift Tax

Same-Sex Marriages Recognized by Jurisdiction of Ceremony

Posted on: October 3rd, 2013
Last week the Internal Revenue Service announced that valid same-sex marriages will be recognized for federal tax purposes based on the where the couple’s union took place. ...

Tax Concerns When Modifying Trusts

Posted on: June 17th, 2013
In May 2013, the Internal Revenue Service issued a Private Letter Ruling addressing tax concerns resulting from a trust modification agreement. PLRs are issued when a taxpayer directly requests guidance from the IRS on a specific matter....

3 Ways to Gift for College

Posted on: April 22nd, 2013
Family members have the best intentions when they offer money to cover college expenses, but if they neglect to use a wise gifting strategy they could affect the student’s eligibility for federal aid....

Estate Tax Exclusion Amount for 2012 to Increase to $5,120,000

Posted on: October 20th, 2012
The IRS announced today that the amount exemption from estate taxes will increase next year. For an estate of any decedent dying during calendar year 2012, the basic exclusion from estate tax amount will be $5,120,000, up from $5,000,000 in 2011....

IRS Announces 2013 Tax Figures

Posted on: October 18th, 2012
In Rev. Proc. 2012-41, the IRS has announced various inflation-adjusted tax figures for 2013. Among them: ...

Tax Law Changes in Obama’s Proposed 2012 Budget

Posted on: February 7th, 2011
Thanks to Keebler and Associates, LLP, CPAs for portions of this summary: Limit the tax rate that certain individuals will get a benefit for their itemized deductions - For investors filing joint returns and having income over $250,000 itemized deductions would only reduce the investor’s tax liability by a maximum of 28%. ...

Estate Tax Claw Back – Don’t Worry About It, Says AALU

Posted on: February 4th, 2011
Since the enactment of TRA 2010 in December of last year, tax practitioners have been concerned that gifts made during 2011 and 2012 may, partially because of the way in which the current Federal Estate and Generation-Skipping Transfer Tax Return (Form 706) ...

Obama Signs 2010 Tax Relief Act

Posted on: December 17th, 2010
This afternoon, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This legislation, negotiated by the White House and select members of the House and Senate, provides for a short-term extension of tax cuts made in 2001....

Middle Class Tax Cut Act of 2010 – Proposed Bill

Posted on: December 3rd, 2010
The legislative text and summary of the Middle Class Tax Cut Act of 2010, released yesterday by Senate Finance Committee Chairman Max Baucus (D-Mont.), is now available at the Finance Committee’s website http://finance.senate.gov/legislation/. A summary of some of the estate tax provisions is set out below....

The Time for FLPs or FLLCs is Now!

Posted on: January 9th, 2010
This is from Steve Akers’ recent presentation, Estate Planning in Light of One-Year ‘Repeal’ of Estate and GST Tax in 2010:...

Planning with the Wyoming Close LLC

Posted on: December 21st, 2009
What is an LLC? In 1977 Wyoming was the first state to enact laws permitting the creation of a Limited Liability Company. ...

Year End Gift Checks – make sure you do it right

Posted on: November 19th, 2009
Many people are aware that they can give any number of other people up to $13,000 per year under the federal gift tax annual exclusion (IRC Section 2503(b)). Staying under this number means that no gift tax return has to be filed and that there will be no reduction in the amount that can be passed free of estate taxes at the donor’s death. ...

U.S. Tax Court – Single Member LLCs Not Disregarded for Gift Tax Purposes

Posted on: August 26th, 2009
Unlike in the income tax and asset protection arena, single member limited liability companies (LLCs) are not disregarded for gift tax purposes. Pierre v. Commissioner, 133 T.C. No. 2 (Aug. 24, 2009). See Paul Caron’s recent TaxProf Blog entry for a brief summary....

Another Lesson on What Not To Do in FLLCs

Posted on: August 2nd, 2009
This is from the latest edition of the GiftLaw eNewsletter: Note from Greg: Family Limited Partnerships (FLPs) were previously the preferred entity for obtaining discounts on transfers of wealth to younger family members. FLPs have largely been replaced by Family Limited Liability Companies (FLLCs). The writer of the article below often refers to FLPs even though the case involved FLLCs....

Intra-Family Loans – Make Sure You Follow the Rules

Posted on: July 11th, 2009
Loans among family members, especially from parents to children, are very common. However, most people are not aware of the tax laws regarding such loans. ...

Tax Discounts Alive and Well – For Now

Posted on: February 5th, 2009
The U.S. Tax Court issued an opinion on January 29, 2009 in the Estate of Marjorie deGreeff Litchfield v. Commissioner (T.C. Memo. 2009-21). ...

Gift Tax Annual Exclusion to Increase in 2009

Posted on: October 16th, 2008
The IRS has announced many annual inflation adjustments for 2009, including an increase in the annual gift exclusion. The annual gift tax exclusion for present interest gifts will be $13,000....

IRS Publishes Report on 2005 Gifts

Posted on: August 19th, 2008
The IRS recently published a report on lifetime wealth transfers in 2005 as disclosed to the IRS on federal gift tax returns. ...

Good News for Family LLCs

Posted on: May 11th, 2008
As a proponent of Family Limited Liability Companies (LLCs) for asset management, creditor protection, and ease of gifting, I was pleased to read about the U.S. Tax Court’s decision in Mirowski v. Commissioner, T.C. Memo 2008-74. ...

NC Gift Tax Reform Under Consideration

Posted on: March 31st, 2008
The Revenue Laws Study Committee of the North Carolina General Assembly is taking a look at reforming the North Carolina Gift Tax. ...

IRS to Publish New Proposed Regulations for 529 Plans

Posted on: March 1st, 2008
The IRS has announced that it will soon propose new regulations governing 529 College Savings Plans, which will (I) contain an anti-abuse rule (to prevent using 529 Plans to skirt gift tax rules);...

Gift and Estate Tax Planning for Non-Citizen Spouses

Posted on: July 4th, 2007
While non-citizens who reside in the U.S. are subject to U.S. income tax on their worldwide income, and U.S. estate tax for worldwide assets, they do not receive the same treatment as citizens when it comes to U.S. gift and estate taxes. ...

Making a Gift? – Make Sure You Know the Rules

Posted on: June 8th, 2007
Gifting property can be an effective way to spend down assets for future Medicaid eligibility and to reduce estate tax liability. Many people are not aware, however, that unless an exclusion or exemption applies, one must file federal and state tax returns on all gifts of property....

Caveat Emptor – When it Comes to Out-of-State Tax Preparers

Posted on: October 8th, 2006
I recently had a client come in who had made a gift of over $120,000 to her brother several years ago, using funds that had originally come from their mother. She used the mother’s accountant in Florida to prepare her gift tax return. ...

Caveat Emptor – When it Comes to Out-of-State Tax Preparers

Posted on: October 8th, 2006
I recently had a client come in who had made a gift of over $120,000 to her brother several years ago, using funds that had originally come from their mother. She used the mother’s accountant in Florida to prepare her gift tax return. ...

North Carolina to Reform Gift Tax?

Posted on: November 30th, -0001
On February 15, 2007, bill H235 was introduced in the North Carolina General Assembly to reform the North Carolina gift tax so that it would be based on the federal gift tax. ...