Deloitte has published an article, "Treasury ‘Green Book’ sheds additional light on Biden’s tax proposals," which discusses and analyzes the Biden administration's tax proposals for the 2022 fiscal year. The article begins as follows: The White House released a fiscal year 2022 budget blueprint on May 28 that, as expected, calls for significant tax increases … Continue reading Deloitte: Treasury ‘Green Book’ sheds additional light on Biden’s tax proposals (May 29, 2021)
Category: Fiduciary Income Tax
Katherine Jeffrey and Dana Reid (Davis Wright Tremaine LLP): Impact of Washington State Capital Gains Tax on Trusts (May 18, 2021)
Katherine Jeffrey and Dana Reid, of Davis Wright Termaine LLP, have made available for download their article, "Impact of Washington State Capital Gains Tax on Trusts," published in JDSupra. The abstract is as follows: As a result of Governor Jay Inslee signing S.B. 5096 on May 4, 2021, Washington state will begin imposing a 7 … Continue reading Katherine Jeffrey and Dana Reid (Davis Wright Tremaine LLP): Impact of Washington State Capital Gains Tax on Trusts (May 18, 2021)
The Wall Street Journal: Some Democratic Lawmakers Push for Wealth Tax on New York Billionaires (February 18, 2021)
The Wall Street Journal has published an article, "Some Democratic Lawmakers Push for Wealth Tax on New York Billionaires," which discusses New York state lawmakers' new income tax collection plan. The article begins as follows: New York state lawmakers are considering an unprecedented form of wealth tax as they search for revenues to plug a budget … Continue reading The Wall Street Journal: Some Democratic Lawmakers Push for Wealth Tax on New York Billionaires (February 18, 2021)
Paul Bonner: Final regs. outline trust and estate expenses still deductible under TCJA (September 22, 2020)
Paul Bonner's column in the Journal of Accountancy focuses on new IRS tax law updates. His article, Final regs. outline trust and estate expenses still deductible under TCJA, begins as follows: The IRS on Monday issued final regulations (T.D. 9918) clarifying that certain expenses incurred by, and certain excess deductions upon the termination of, an … Continue reading Paul Bonner: Final regs. outline trust and estate expenses still deductible under TCJA (September 22, 2020)
TD 9918: Non grantor Trusts Misc. Itemized Deductions
Treasury has released final regulations contenting amendments to Treas. Reg. §§1.67–4, 1.642(h)–2 and 1.642(h)–5, clarifying that the following deductions allowed to an estate or non-grantor trust are not miscellaneous itemized deductions: costs paid or incurred in connection with the administration of an estate or non-grantor trust that would not have been incurred if the property … Continue reading TD 9918: Non grantor Trusts Misc. Itemized Deductions
Sage v. Commissioner, 154 T.C. 121 (June 2, 2020): No Loss on Transfer of Property to Grantor Trust
In Jason B. Sage v. Commissioner, the Tax Court held that a developer's transfer of property to a liquidating trust for the benefit of his creditors, which was a grantor trust, did not trigger a loss on the transfer of property to the trust. The opinion synopsis is as follows: P, a real estate developer, … Continue reading Sage v. Commissioner, 154 T.C. 121 (June 2, 2020): No Loss on Transfer of Property to Grantor Trust
IRS Issues Proposed Regs on Itemized Deductions for Non-Grantor Trusts
The The Internal Revenue Service today issued proposed regulations that provide guidance for estates and trusts clarifying that certain deductions of estates and non-grantor trusts are not miscellaneous itemized deductions. The Tax Cuts and Jobs Act (TCJA) prohibits individual taxpayers from claiming miscellaneous itemized deductions for any taxable year beginning after December 31, 2017, and … Continue reading IRS Issues Proposed Regs on Itemized Deductions for Non-Grantor Trusts
Tax Reform Implications for Fiduciaries
By Nicole Pursley The Tax Cuts and Jobs Act of 2017 (the Tax Act) made significant changes to the United States Tax Code, with implications on virtually all areas of taxation, including some that affect fiduciaries. This article provides a broad overview of some tax implications that may be of importance to trust and estate … Continue reading Tax Reform Implications for Fiduciaries
Crawford & Blattamachr: Basis and Bargain Sales: Income Tax and Other Concerns, The Tax Lawyer (2020)
Bridget J. Crawford, Pace University School of Law, and Jonathan G. Blattmachr, have made available for download their forthcoming Tax Lawyer article, Basis and Bargain Sales: Income Tax and Other Concerns. The Abstract is as follows: This article explores the income tax consequences of the sale during lifetime and at death of property for less … Continue reading Crawford & Blattamachr: Basis and Bargain Sales: Income Tax and Other Concerns, The Tax Lawyer (2020)
Benyamini, Tax-exempt trusts: New guidance on Sec. 199A deduction, The AICPA Tax Adviser (Nov. 1, 2019)
Nanaz Benyamini has published his article, Tax-exempt trusts: New guidance on Sec. 199A deduction in The AICPA Tax Adviser (Nov. 1, 2019). The Abstract is as follows: The IRS has posted informal guidance to explain how trusts that file Form 990-T, Exempt Organization Business Income Tax Return, and have unrelated business income, can claim the qualified … Continue reading Benyamini, Tax-exempt trusts: New guidance on Sec. 199A deduction, The AICPA Tax Adviser (Nov. 1, 2019)
Zhao: New rule on nonresident aliens in an S corporation, The AICPA Tax Adviser (Nov. 1, 2019)
Fei Zhao, CPA, has published his article in the AICPA Tax Adviser, New rule on nonresident aliens in an S corporation. The Abstract is as follows: The new tax law provides a way to avoid the unexpected termination of the S election when a nonresident alien becomes a potential current beneficiary of an electing small … Continue reading Zhao: New rule on nonresident aliens in an S corporation, The AICPA Tax Adviser (Nov. 1, 2019)
Kim Trujillo, Unexpected tax bills for simple trusts after tax reform, AICPA Tax Advisor (Sept. 1, 2019)
Kim Trujillo has published an article, Unexpected tax bills for simple trusts after tax reform, published in the AICPA Tax Advisor (Sept. 1, 2019). The article begins as follows: An overlooked impact of the 2017 tax reform act has resulted in many simple trusts' having a tax liability on ordinary income, which was rarely the … Continue reading Kim Trujillo, Unexpected tax bills for simple trusts after tax reform, AICPA Tax Advisor (Sept. 1, 2019)
Resolving Tax Debts is Easy: It’s All About the Process
By Eric L. Green, Esq. Taxpayers often become frustrated and scared when dealing with the IRS on a back tax debt.In reality, however, resolving a tax debt is reasonably straightforward and can save taxpayers from unnecessary distress. A statutory lien is normally issued after tax returns are filed and payments must be arranged by the … Continue reading Resolving Tax Debts is Easy: It’s All About the Process
Diana Theis: IRA Beneficiary Options: What You Need to Know (Aug. 13, 2019) (Wolters Kluwer)
Diana Theis, Sr. Specialized Consultant at Wolters Kluwer has published her insight, IRA Beneficiary Options: What You Need to Know (Aug. 13, 2019) (Wolters Kluwer). Her article begins as follows: The required minimum distribution (RMD) rules applicable to individual retirement accounts (IRAs) are written in two parts, including distributions before an IRA owner’s death (i.e., … Continue reading Diana Theis: IRA Beneficiary Options: What You Need to Know (Aug. 13, 2019) (Wolters Kluwer)
Deloitte Free Webinar: Developments in State Taxation of Trusts, including Kaestner
Deloitte is offering a free webinar on the state taxation of trusts, including planning after Kaestner. The summary is as follows: On June 21, 2019, the Supreme Court issued its opinion in North Carolina Department of Revenue v. Kimberley Rice Kaestner Family Trust concerning the constitutionality of the North Carolina fiduciary income tax approach. How does this … Continue reading Deloitte Free Webinar: Developments in State Taxation of Trusts, including Kaestner
PLR 201931006: Decedent IRA Not Inherited IRA
In PLR 201931006, the IRS concluded that an IRA inherited by a surviving spouse was not an inherited IRA under Code Sec. 408(d)(3)(C). The IRA lacked a designated beneficiary. However, the IRA custodian provided that in such cases, with no designated beneficiary, the IRA would be payable to the decedent’s estate. Here, the taxpayer was … Continue reading PLR 201931006: Decedent IRA Not Inherited IRA
Crawford, Magical Thinking and Trusts (July 20, 2019) [Kaestner commentary]
Professor Bridget J. Crawford, Pace University School of Law, has made available for download her article, Magical Thinking and Trusts, to be published in the Seton Hall Law Review. The Abstract is as follows: At a time of monumental economic inequality in the United States, wealthy individuals and their tax-motivated behavior have come under significant … Continue reading Crawford, Magical Thinking and Trusts (July 20, 2019) [Kaestner commentary]
Joint Committee on Taxation Description of President Trump’s FY 2020 Budget Recommendations, including Proposal to Make Permanent Individual Tax Provisions, Including Estate & Gift Tax Provisions
The Joint Committee on Taxation has made available it's description of revenue provisions in President Trump's FY 2020 Budget Proposal. These include the proposal to make permanent the individual tax provisions that sunset for tax years beginning on or after January 1, 2026, including the estate and gift tax provisions, among others. To see the … Continue reading Joint Committee on Taxation Description of President Trump’s FY 2020 Budget Recommendations, including Proposal to Make Permanent Individual Tax Provisions, Including Estate & Gift Tax Provisions
PLR 201927009: Estate allowed to transfer, via trustee-to-trustee transfers, amounts from one IRA to two inherited IRAs to separate the interests of two children.
In PLR 201927009, the IRS ruled that an estate could transfer, via trustee-to-trustee transfers, amounts from one IRA to two inherited IRAs to separate the interests of two children. The IRS ruled that such transfers do not result in distributions under Code Sec. 408(d)(1)such transfers do not result in rollovers under Code Sec. 408(d)(3)the inherited … Continue reading PLR 201927009: Estate allowed to transfer, via trustee-to-trustee transfers, amounts from one IRA to two inherited IRAs to separate the interests of two children.
Wealth Strategies Journal 