Our Estate and Gift tax professionals are continuously called upon to assist individuals, business owners and families to determine and attain their estate and gift tax and wealth preservation goals. They are involved often in assisting with business succession issues and charitable planning, in counseling clients with complicated family situations, and in preparing and filing estate and gift tax returns. The scope of our services ranges from estates of several million dollars to more than $1 billion in assets.
Our professionals are well versed in all facets of the Generation Skipping Transfer tax, probate issues and related specialized areas. We can assist families in gathering the information necessary to help in making informed decisions and in dealing with their other professional advisors.
The IRS released its proposed regulations on November 23 to include the increased basic exclusion amount (BEA) per the Tax Cuts and Job Acts (TCJA).
Under the newly enacted Tax Cuts and Jobs Act, the Federal estate, gift and generation-skipping tax (GST) lifetime exemption amounts have now increased to $11.2 million for individuals and $22.4 million for married couples. After increasing with inflation each year through 2025, the exemption amounts will revert back to the 2017 levels ($5,490,000 and $10,980,000) on Jan. 1, 2026. These substantial, yet temporary, increases in the exemption amounts present a unique opportunity for the implementation of various estate planning techniques that will allow the transfer of wealth to future generations.
Republicans have unveiled their proposed tax plan today. The proposal includes a path to repeal the US federal estate tax. This should be of interest to wealthy individuals, including foreign nationals investing in the US through US corps, real estate, and/or other activities.
With ever-growing globalization, wealthy families have taken the opportunity to live and maintain homes all across the world, including in the United States. One of the potential challenges facing such individuals is planning their estates in an effort to maximize tax efficiencies and to retain their hard-earned wealth.
If you are a recent widow or widower who thought you missed out on the opportunity for your spouse's estate to make a portability election or perhaps did not think you had a need when your loved one died, the IRS has given you another chance. Earlier this month, the IRS provided a way for the estate of a decedent who was married at the time of death to make a late portability election through recently issued Revenue Procedure 2017-34.
A United States citizen dies in the United Kingdom having spent a significant number of years living and working in the UK. To which country or countries will estate taxes be payable?
Fortunately, in the case of the US and the UK there is an estate tax treaty that has mechanisms to prevent double taxation.
According to UHY partner Christopher Byrne, the US / UK Estate Tax Treaty uses domicile primarily as the bases of estate taxation. The exception is real property and business property of a permanent establishment. Those are taxed based on location.
The IRS has issued a new taxpayer friendly procedure for certain estate tax returns that missed the filing deadline to obtain the portability election. Rev. Proc. 2017-34 provides a simplified method to receive an extension of time to make a portability election if you didn't file the 706 return on time. A portability election allows a deceased taxpayer to transfer any unused gift/estate tax exemption amount (currently the maximum is $5,490,000 in 2017) to their surviving spouse.
President-elect Donald Trump has promised to introduce a tax plan that includes estate tax repeal as a priority in his first 100 days, however several questions must be addressed before repeal becomes reality.
Last summer, proposed changes to Section 2704 of the Internal Revenue Code appeared to be tightly constraining the benefits of certain transfers of family-controlled business assets by eviscerating discounts that might be available to such transfers. The proposed changes caused a visceral reaction within much of the accounting, financial planning and legal industries as it started a clock on implementing those strategies before a potential change.
After the most significant election in our nation's history, the votes are in and Republican nominee, Donald Trump has been elected to become the 45th president of the United States. President-elect Trump's tax plan looks to reduce taxes across the board, including making the business tax rate more competitive and creating new opportunities to grow our economy. Before any proposed changes can be made, they must be approved by Congress.
On Aug. 4, 2016, The IRS issued proposed regulations that will dramatically affect your ability as a business owner to transfer wealth to the next generation in a tax efficient manner. The time to act is now as these changes could be in force by the end of this year. These regulations are currently open for public comments which could result in changes, however waiting may not be the most prudent option.
The sudden death of pop icon and Rock & Roll Hall of Famer, Prince, left fans all over the world weeping and cities paying their last respects with Purple Rain-themed tributes on buildings and stadiums. It was a death so unexpected that Prince has no known will.
Congress is requiring a new informational return to be filed with the IRS to ensure there is a consistent reporting of the basis of assets between the estate tax return and the beneficiary receiving the asset. The IRS has finalized the Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent. An executor or personal representative of an estate who filed a Form 706 (Estate and Generation -Skipping Transfer Tax Return) for a decedent, will be required to file Form 8971 with both the IRS and the beneficiaries of the estate. Form 8971 is only required for those estates where the total gross estate value exceeded the filing threshold requiring it to file a 706 return.
In 2016, the estate/gift tax exemption has increased to $5.45 million for federal tax purpose. There are many factors to take into consideration to avoid unintended tax consequences and prepare for an orderly transfer of assets. Below are four tax-friendly reminders to consider while planning for your estate.
People always say there are two guarantees in life - death and taxes. While that may be true, you can escape a lot of tax when you pass away. The "portability" rules provide for the transfer of a deceased spouse's unused estate tax exemption (deceased spousal unused exclusion or "DSUE"). In 2015 the exemption amount is $5,430,000; therefore if the decedent's taxable estate is not more than the exemption amount, the DSUE can be used by the surviving spouse with respect to both gift taxes and estate taxes.
On Friday, July 31, President Obama signed into law the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.
In order to deduct charitable contributions on your personal return, you must adhere to the following guidelines.