The Internal Revenue Service has published a new webpage “Reporting Excess Deductions on Termination of an Estate or Trust on Forms 1040, 1040-SR, and 1040-NR for Tax Year 2018 and Tax Year 2019.” These are instructions telling beneficiaries of estates … 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
The Internal Revenue Service has published proposed 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,” REG-113295-18, 85 F.R. 27693 (5/11/2020), Doc....
We previously reported that Notice 2020-23 defers until July 15, 2020, the filing certain tax returns and making tax payments, as well as the time for completing certain “time-sensitive actions,” that would otherwise be required on or after April 1, … Continue reading
H.B. 262, which eliminates the inheritance tax on all transfers from parents to children who are 21 or younger, also allows revocable trusts to be treated as part of the estate for Pennsylvania income tax purposes if the estate has … Continue reading
The U.S. Supreme Court has held that a state cannot tax the undistributed income of a trust when the only connection between the state and the trust is that beneficiaries of the trust resides in the state but the beneficiaries … Continue reading
The Internal Revenue Service has announced that, starting May 13, all applications for an employer identification number (EIN), whether submitted on-line or on Form SS-4, will require the name of an individual and either a Social Security number (SSN) or … Continue reading
One of the most common capital transactions for estates is the sale of the decedent’s residence, and current tax law would seem to provide the greatest benefit to beneficiaries by claiming the expenses of that sale as part of that...
This is an overview/explanation from Webcalculators: … Continue reading
As previously announced, I’ve created an on-line service that provides specialized calculators for estate and tax planning issues. Although the service is still known as Webcalculators, the domain has been changed to wcalcs.com. Previous links and references to the service … Continue reading