U.S. spouses each have a unified credit that allows for substantial gifting to third parties without requiring the payment of gift tax. What happens if one spouse has assets to be gifted away, but that spouse does not have sufficient
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Increases in Estate and Gift Tax Exemption Amounts Announced by IRS
We have gone from scrambling to deal with a decrease in the unified credit under proposed legislation, to now enjoying the 2022 inflation adjustments. Enjoy!2022 Annual Gift Tax Exclusion – increased to $16,000 from $15,000. Good news, but makes it
Clock is Ticking to Request Older Copies of Forms 706 and 709 from the IRS
The IRS presently has a 75-year retention period for estate tax returns and related gift tax returns. It is going to reduce that period to 40 years. They are advising taxpayers who want copies of returns older than 40 years
Indirect Loans Between a Private Foundation and a Disqualified Person Are on the IRS’ Radar
Code Section 4941(d)(1)(B) treats lending transactions between a private foundation and disqualified person as an act of self-dealing (although an interest-free loan by the disqualified person to the private foundation is not self-dealing) subject to an excise tax. What happens
Foreign Grantor Trust Making a Distribution to Owner/Beneficiary – One or Two Penalties for Nonreporting?
A U.S. grantor of a foreign trust that is a grantor trust that receives a distribution from the trust as a beneficiary has two U.S. filing requirements attributable to the foreign trust status:
New Homestead Laws in Florida
In its most recent legislative session, the Florida legislature enacted a number of additions and modifications to Florida statutory law relating to Florida’s homestead exemption. These provisions can be summarized as enhancing or clarifying the exemption. The following is a
Maltese Pension Plan in the Sights of the IRS
The Maltese pension plan is a planning device for U.S. taxpayers to use the U.S. – Malta tax treaty to obtain tax deferral and tax avoidance benefits similar to a Roth IRA, but without many of the limitations of a
Q&A on Florida’s New Directed Trust Act
Below is a copy of article to be published this evening on Leimberg Information Services:Florida’s version of the Uniform Directed Trust Act (the “FUDTA”) has passed both houses of the Florida legislature and is expected to be signed into law
No "All Going to Charity" Exception for Chenoweth/Ahmanson Funding Issue
Taxpayers and planners love to use valuation reductions for partial interests in entities as a method for reducing transfer taxes. Such reductions and discounts can be a two-edged sword, however.The Ahmanson and Chenoweth cases point out that when a majority interest
Cryptocurrency and the IRS – Some Important Updates
Cryptocurrency is treated like any other investment asset for federal income tax purposes and not “money.” Therefore, taxpayers that sell cryptocurrency for a gain incur taxable capital gains for income tax purposes.It is likely that a fair amount of cryptocurrency