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Tax Law Roundup current law developments in U.S. taxation

Category Archives: Estate and Gift

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New Basis Reporting Requirements for Executors and Beneficiaries

Posted in Estate and Gift, Tax, trusts and estates

Recent federal legislation adds fresh compliance burdens to an old concept in federal tax law: the step-up in tax basis of appreciated property at death.  New reporting requirements will apply to estates required to file a federal estate tax return after July 31, 2015 and are effective beginning June 30, 2016. Executors and beneficiaries who do… Continue Reading

Estate Tax Regulations Allow Taxpayers to Request Late Portability Relief

Posted in Estate and Gift

The IRS released new final estate and gift tax regulations that include guidance on taxpayers seeking so-called “portability” elections to carry over the lifetime exclusion from the first spouse to die to the second spouse.  The new rules require a formal private letter ruling request under Section 9100 to request permission of the IRS to… Continue Reading

IRS Issues Final Regulations on Deducting Fiduciary Expenses

Posted in Estate and Gift

The IRS has released final regulations regarding which expenses incurred by a trust are fully deductible for income tax purposes and which are subject to the 2% floor for miscellaneous itemized deductions.  In general, the regulations provide that expenses incurred by a trust are subject to the 2% floor if they commonly are, or customarily… Continue Reading

IRS Allows One-Time Estate Tax Portability Catch-Up Election

Posted in DOMA, Estate and Gift

New Rev. Proc. 2014-18 allows taxpayers a one-time catch up election for a surviving spouse to benefit from any unused estate tax exemption from the first spouse to die.  Taxpayers have until December 31, 2014 to file the election for estates of decedents who died in 2011, 2012 or 2013. What is portability and how… Continue Reading

IRS Extends Deadlines for 2010 Estates

Posted in Estate and Gift, General

The IRS issued Notice 2011-76, providing additional time for filings and estate tax payments related to the estate of a decedent who died before December 17, 2010, whether filing Form 706 (Estate Tax) or new Form 8939 (Allocation of Increase in Basis for Property Acquired From a Decedent).  Pursuant to the Notice, estates that file… Continue Reading

IRS Reproposes Regulations on Trusts and Estates and 2-Percent Itemized Deduction Floor

Posted in Estate and Gift, General

The IRS withdrew previous regulations and issued reproposed regulations, specifying which costs incurred by an estate or a non-grantor trust are subject to the 2-percent floor for miscellaneous itemized deductions under section 67(a).  The guidance also calls for the unbundling of fiduciary fees paid to investment advisers.  The new regulations adopt the Supreme Court decision in… Continue Reading

IRS-Treasury 2011-2012 Business Plan Released

Posted in Corporate, Corporations: International, Estate and Gift, General, Partnership/LLC

The IRS released its annual Priority Guidance Plan on September 2, containing 317 projects that are priorities for the twelve-month period from July 2011 through June 2012.  Although the total number of items on the list is similar to the prior year, some categories contain a more robust list of projects.  For example, partnership tax… Continue Reading

IRS Guidance on Carryover Basis Election for 2010 Decedent Estates

Posted in Compliance, Estate and Gift

The IRS issued important procedural guidance on how estates for decedents dying in 2010 may elect out of the estate tax, thereby giving up the favorable income tax basis step up at death.  Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is due Nov. 15,… Continue Reading