One of the duties of the executor or administrator of an estate is to file required income tax returns for the decedent. I.R.C. § 6012(b)(1) states that the federal income tax return that is required for a decedent shall be...
The Act of February 5, 2021 (No. 1 of 2021), S.B. 109, provides that The forgiveness of paycheck protection program (“PPP”) loans that is not income for federal income tax purposes under the Tax Relief Act of 2020 (Subtitle B … Continue reading
The Internal Revenue Service has released Rev. Proc. 2020-45 with inflation adjustments for 2021 and, consistent with earlier predictions, the changes in the most significant federal estate and trust planning numbers will be as follows: The base applicable exclusion amount … Continue reading
The Internal Revenue Service has published final regulations on the deductibility of administration expenses for both estates and trusts and for their beneficiaries when the estates or trusts terminate. “Effect of Section 67(g) on Trusts and Estates,” TD 9918, 85...
The article “Low-Interest Estate Planning Strategies” described several estate planning strategies that should be considered now that interest rates have reached record lows. One of the strategies that is described in the article is a private annuity. Webcalculators has been … Continue reading
With the release of the Chained Consumer Price Index (C-CPI-U) for August 2020, it’s possible to calculate various inflation adjustments for 2021. The following are the significant federal estate planning numbers, with the numbers for 2020 shown in parentheses: The … Continue reading
The National Taxpayer Advocate Objectives Report to Congress for Fiscal Year 2021 (6/29/2020) addresses the issue of whether deceased taxpayers may receive “economic impact payments” (aka “stimulus payments”) authorized by the CARES Act and made the following observations and recommendations: … Continue reading
The article “Proposed Regulations on Administration Expenses and Excess Deductions” contained some errors or omissions that have now been corrected. The article originally stated that the calculation of different kinds of excess deductions was not clear, and suggested that the … Continue reading
[9/28/2020 Update: Final regulations have been adopted and a section has been added at the end of this article briefly describing the few differences between the proposed and final regulations.] The Internal Revenue Service has published proposed regulations on the...
The IRS has updated its “Economic Impact Payment Information Center” FAQ to include the following new Q10: “Q10. Does someone who has died qualify for the Payment? (added May 6, 2020)“A10. No. A Payment made to someone who died before receipt … Continue reading