Each year statutory provisions require the IRS to adjust tax rates based on inflation. Although we’re a bit tardy posting the numbers, here are the ones that matter most for our purposes. Gift Tax Annual Exclusion: $18,000 per recipient or $36,000 per recipient for a married couple. This is not a limit on gifting, but […]
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In a case to be argued on December 5, 2023, Moore v. United States, the question presented is whether the Sixteenth amendment authorizes Congress to tax unrealized sums without apportionment among the states. The case concerns Congressional taxation under the 2017 Tax and Jobs Act (TCJA) which imposed a mandatory repatriation tax on pre-2018 profits […]
In Notice 2023-54, the IRS granted relief to individuals and retirement plans from taking required minimum distributions in 2023. This applies to both individual accounts and inherited IRAs where distributions were mistakenly taken although no distribution was required. This relief appears to be the result of the IRS’s delay in issuing final regulations under the […]
Until recently, the IRS has said little (if anything) regarding whether assets the beneficiary of an irrevocable trust receives get a step up in basis following the Grantor’s death. With issuance of Revenue Ruling 2023-2, that has changed. The IRS has spoken. In RR 2023-2, the IRS posed the following hypothetical which I’ve edited slightly: […]
There are several steps in setting up a tax exempt organization. We’re reviewing them here. However, this post is not designed to tell you anything other than the set-up process and it is not intended to be tax advice. CIRCULAR 230 NOTICE: To comply with the requirements imposed by the United States Treasury Department, any […]
H.R. 2617, commonly known as the Consolidated Appropriations Act, 2023 (which includes the SECURE Act 2.0), amended provisions in the tax code to allow special needs trusts to leave remaining funds in a retirement account to a charitable organization. The Bill became Law when signed by President Biden on December 29, 2022. The Senate Summary […]
The Build Back Better Act passed the U.S. House of Representatives on Friday, November 19, 2021 on a mostly party-line vote. The White House describes the key provisions as: It lowers your costs to save you money on things like prescription drugs and health care and housing. It gets Americans back to work by providing […]