Rubin on Tax: FBAR Penalties Survive Death (November 8, 2020)

Charles (Chuck) Rubin, in his Rubin on Tax blog, discusses the ability of the IRS to assess and collect FBAR penalties for failure to disclose foreign accounts. The article begins as follows: The IRS may assess penalties for a person’s failure to file a required FBAR. If the person’s failure to file was willful, the IRS can … Continue reading Rubin on Tax: FBAR Penalties Survive Death (November 8, 2020)

Rubin on Tax: Antideferral Tax Legislation on the Horizon? What is Antideferral Tax Legislation? (January 20, 2021)

Charles (Chuck) Rubin, in his Rubin on Tax blog, discusses the implications of Biden's imminent plans to raise taxes, possibly through the adoption of antideferral rules, via a report by Senate Finance Committee ranking member Senator Ron Wyden. The article begins as follows: Presently, taxpayers who own appreciating assets are not taxed on the appreciation until the … Continue reading Rubin on Tax: Antideferral Tax Legislation on the Horizon? What is Antideferral Tax Legislation? (January 20, 2021)

Charles (Chuck) Rubin: Treasury Makes Life Easier for Holders of Canadian Retirement Account Interests

By: Charles (Chuck) Rubin   Summary: Treasury automates the process for U.S. taxpayers making an election to defer taxation of Canadian RRSPs and RRIFs and to eliminate some information reporting requirements as to those accounts. U.S. persons are generally not subject to U.S. income tax on individual retirement accounts ("IRAs") until distributions are taken. Canada … Continue reading Charles (Chuck) Rubin: Treasury Makes Life Easier for Holders of Canadian Retirement Account Interests

Charles (Chuck) Rubin: Hidden Gift in Merger Transaction

By: Charles (Chuck) Rubin Summary: Disguised gifts found in a merger transaction, along with an interesting story on how the gifts came about. Most tax practitioners are trained to look behind the transfers occurring in family corporate transactions to determine if a disguised gift is being made. A recent Tax Court case provides a real … Continue reading Charles (Chuck) Rubin: Hidden Gift in Merger Transaction

Charles (Chuck) Rubin: Court Grants 44.75% Fractional Discount in Artwork, but Don’t Get Too Excited

By Charles (Chuck) Rubin SUMMARY: An appellate opinion granting a 44.75% discount for a fractional ownership interest in artwork has limited precedential value. The Fifth Circuit Court of Appeals recently overruled the Tax Court's 10% fractional interest discount allowed for artwork in an estate tax valuation case. Instead, the appellate court allowed in full the … Continue reading Charles (Chuck) Rubin: Court Grants 44.75% Fractional Discount in Artwork, but Don’t Get Too Excited

Charles (Chuck) Rubin: Mission Creep Costs a Section 501(c)(3) Organization Its Exemption

By Charles (Chuck) Rubin SUMMARY: A change in function of a Section 501(c)(3) organization results in the IRS revoking its exemption. To receive Section 501(c)(3) status, exempt organizations apply for exemption from the IRS. The exemption application provides details on what the organization intends to do, and the IRS confirms that it is an appropriate … Continue reading Charles (Chuck) Rubin: Mission Creep Costs a Section 501(c)(3) Organization Its Exemption

Charles (Chuck) Rubin: No Informal Abandonment of Residency Allowed

By Charles (Chuck) Rubin SUMMARY: The Tax Court rules against informal abandonment of resident status. Individuals who are admitted to the US as lawful permanent residents ("green card" holders) are treated as U.S. residents for income tax purposes. Code section 7701(b)(1)(A)(i). As such they are subject to U.S. income taxes on their worldwide income. Resident … Continue reading Charles (Chuck) Rubin: No Informal Abandonment of Residency Allowed

Charles (Chuck) Rubin: Frequent Flyer Miles – Sometimes Taxable, Sometimes Not

By Charles (Chuck) Rubin A recent Tax Court case adds to the rules that now exist whether frequent flyer miles will be considered taxable income. Below is a summary. 1. The general rule under Announcement 2002-18 is that awarded miles, whether issued by an airline for purchasing tickets, or from other issuers (well, at least … Continue reading Charles (Chuck) Rubin: Frequent Flyer Miles – Sometimes Taxable, Sometimes Not

Charles (Chuck) Rubin: Interest Income Risk on Unpaid Related Party Loans

By Charles (Chuck) Rubin SUMMARY: If interest is not timely paid on related party indebtedness, the payee may need to report original interest discount income. How often do you see or implement interest-bearing related party loans (e.g., among family members or between related corporations or other entities)? Pretty often, I’m sure. How often do you … Continue reading Charles (Chuck) Rubin: Interest Income Risk on Unpaid Related Party Loans

Announcing New Columnist: Charles (Chuck) Rubin

The Wealth Strategies Journal is pleased to announce the start of a new column, Rubin on Tax, authored by Charles Rubin. The Rubin on Tax column reviews recent case law, regulations and other official announcements, and articles of interest to keep Wealth Strategies Journal readers current on tax and legal issues related to federal and … Continue reading Announcing New Columnist: Charles (Chuck) Rubin

Charles (Chuck) Rubin: Florida Homestead Status – Current Use Requirement and Marital Settlement Agreements

By: Charles (Chuck) Rubin Summary: A recent Florida case discusses the need for current use of a residence for it to qualify as homestead property, and the interaction of homestead property and marital settlement agreement provisions. Under Florida law, a decedent will be restricted in devising his or her homestead property at death. If those … Continue reading Charles (Chuck) Rubin: Florida Homestead Status – Current Use Requirement and Marital Settlement Agreements