Think about how many things you do using the Internet. We surf the Internet for information using an Internet account. We buy merchandise online, and often set up an account using the merchant’s online order and payment service or perhaps using a service like PayPal to buy it. We do our banking or keep trackRead More
On March 27, the Tax Court released its much anticipated decision in Frank Aragona Trust v. Commissioner. The court’s decision is extremely important to our clients with business interests held in trust. Frank Aragona Trust answers the question of whether a trustee’s activities, in a non-fiduciary capacity (i.e. as an employee), of a business thatRead More
It is important to be informed when filing a tax return for a special needs trust. Trustees should be familiar with Form 1041 and its impact on individuals with special needs. Read the latest Special Needs Planning newsletter to better understand Form 1041 and its implications.
On January 28, 2014, in the case of Bobrow v. Commissioner, T.C. Memo 2014-21, the U.S. Tax Court issued a ruling regarding IRA rollovers that was quite unexpected because it was in direct conflict with IRS published guidance for taxpayers and a proposed regulation. An IRA rollover refers to the instance where a taxpayer receivesRead More
When Congress passed the American Taxpayer Relief Act of 2012 (“ATRA”) to avoid the “fiscal cliff,” a sense of stability was finally provided to the transfer tax system, which had been in a state of almost constant change for over a decade. ATRA “permanently” fixed the amount of wealth that an individual may transfer freeRead More
Trust management can be burdensome. Balancing beneficiary needs, wants and concerns with laws and regulations is overwhelming. Special Needs Trusts can be even an even more challenging responsibility, especially when it comes to homeownership. Read the latest Special Needs Planning newsletter to better understand special needs trusts and what to consider when managing them.
As we mentioned last week there are still 2013 planning opportunities that can be accomplished in 2014. It’s also a good time to begin thinking about 2014 planning opportunities. For the first time in several years, the transition to a new year did not coincide with uncertainty or drastic changes in the tax law that will make long-term planning a speculative endeavor.
Happy New Year! The calendar says 2014, but there is still tax planning that can be accomplished for 2013 in traditional estate planning areas, like trusts and estates, retirement plans and charities. Below are a few actions you can take in 2014 to affect your 2013 taxes: We have talked in an earlier blog about the possibilityRead More
The Internal Revenue Service recently issued important guidance that will affect both transfer tax planning and income tax planning for same-sex couples. In Revenue Ruling 2013-17, the IRS provided concrete answers to several questions that followed the Supreme Court’s ruling in Windsor v. United States. In Windsor, the Supreme Court held §3 of the DefenseRead More
In an earlier blog post, my colleague Leigh Kaylor provided a general overview of the mechanics of the new 3.8% tax on net investment income, which became applicable in 2013 as part of the Affordable Care Act. The 3.8% tax on net investment income is not just applicable to individuals; the tax is also imposed on trusts.Read More