Draft 2019 Form 1040 + Schedules Released

The IRS has released its draft 2019 Form 1040 along with associated schedules. See draft 1040 and schedules by clicking links below: Form 1040 (Schedule 8812)Additional Child Tax CreditForm 1040 (Schedule R)Credit for the Elderly or the DisabledForm 1040-SRU.S. Tax Return for SeniorsForm 1040-NR-EZU.S. Income Tax Return for Certain Nonresident Aliens With No DependentsForm 1040 … Continue reading Draft 2019 Form 1040 + Schedules Released

Sangster, Family Business Transitions: Rising to the Challenge

Claudia Sangster, Co-Director, Norther Trust, Family Education and Governance, has made available for download her article, Family Business Transitions: Rising to the Challenge (May 2019). The summary is as follows: • Only 12% of family businesses survive to the third generation• Developing a plan and process to prepare the next generation of leadership can improve … Continue reading Sangster, Family Business Transitions: Rising to the Challenge

PLR 201928003: Code Sec. 7520 – Terminal Taxpayer May Use Special Actuarial Factor for Gift Valuation

In PLR 201928003 the IRS ruled that a terminal taxpayer may use a special actuarial factor to value certain gifts made by her during her lifetime. The facts were as follows: Taxpayer was born on Date 1. Taxpayer is the income beneficiary of three trusts. On Date 2, Taxpayer utilized the disclaimer provisions expressly provided … Continue reading PLR 201928003: Code Sec. 7520 – Terminal Taxpayer May Use Special Actuarial Factor for Gift Valuation

PLR 201928005: Tax Consequences of Charitable Lead Annuity Trust (CLAT) Termination

In PLR 201928005 the IRS ruled on tax consequences of the termination of a CLAT. Here, a decedent's estate was transferred from a charitable lead annuity trust (CLAT) to a charitable foundation after decedent's death pursuant to decedent's will. The CLAT paid annual annuity payments to the foundation. The CLAT requested a state court order … Continue reading PLR 201928005: Tax Consequences of Charitable Lead Annuity Trust (CLAT) Termination

CCA 201928014: Corporate Charitable Contribution Carryover Adjustment Determined Using NOL Absorption Computation

The IRS in CCA 201928014 ruled that a corporation with several years of NOL carryovers and charitable contribution carryovers must determine a charitable contribution carryover adjustment using a chronological, year-by-year NOL absorption computation. The IRS stated that using an aggregate basis standard to determine the adjustment was not accurate. The IRS also stated that the … Continue reading CCA 201928014: Corporate Charitable Contribution Carryover Adjustment Determined Using NOL Absorption Computation

Adkison, California Child Support Order Not Enforced Against South Dakota Trust In Cleopatra (June 27, 2019).

Jay Adkisson has summarized the Cleopatra Cameron Gift Trust cases dealing with the enforcement of a California child support order against a South Dakota Trust. Mr. Adkisson's article begins as follows: Through the gifts and subsequent death of her father, California resident Cleopatra Cameron ended up as the beneficiary of two trusts (collectively, the Trust) … Continue reading Adkison, California Child Support Order Not Enforced Against South Dakota Trust In Cleopatra (June 27, 2019).