In 1986, two years into Ronald Reagan's second term, the Democrats regained a Senate majority. David Pryor, a Democratic senator from Arkansas, used his new position as chairman of the Senate Subcommittee on Oversight of the Internal Revenue Service, to launch an attack on what he called the IRS' … [Read more...]
IRS Proposes New Regulations to Limit Discounts for Gifts Of Family Owned Entities
For the last few decades, one of the most popular methods for transferring assets to a next generation was the gifting or sale of partnership, LLC or closely held corporate interests, the valuation of which could take advantage of “discounts” due to “lack of marketability” and “lack of … [Read more...]
Year-End Charitable Gift Tips from the IRS
The IRS has provided tips and reminders to individuals and businesses making year-end gifts to charity. They highlighted the rules for claiming deductions for charitable contributions of clothing and household items along with the guidelines for monetary donations. Clothing and Household ItemsThe … [Read more...]
Estate and Gift Tax Update
Keep up With the Rules Four years ago, Congress unexpectedly raised the individual lifetime exclusion for estate and gift tax from $3.5 million to $5 million, effective for 2011 and 2012. Due to the concern that the exclusion would go back to $1,000,000 for 2013, the increase resulted in a great … [Read more...]
Is it more taxing to give or to receive?
Changes to gift and estate taxes Although it didn’t receive as much publicity as other parts of the American Taxpayer Relief Act of 2012 (ATRA), estate and gift taxes also got a makeover by our representatives. Congress permanently increased the maximum estate and gift tax rate to 40% for estates … [Read more...]
Newsflash – “Fiscal Cliff” Rapidly Approaching
Dear Clients and Friends, As you have no doubt heard discussed in the media, the "fiscal cliff" is rapidly approaching. Included in this "fiscal cliff" is the expiration of some very beneficial estate and gift tax exclusions and tax rates. Until December 31, 2012, the amount you can currently … [Read more...]
