In North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust, the U.S. Supreme Court was asked to review North Carolina’s attempt to tax an out-of-state trust. Justice Sotomayor, writing for a unanimous court, said the case was about the limits of a State’s power to tax a trust. “The North Carolina […]
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On July 19, 2024, the IRS published final regulations regarding required minimum distributions (RMDs) from qualified plans. Required Minimum Distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. You generally must start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts when you reach […]
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 […]
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 […]
February 18th is National Caregiver’s Day! General News Sources: Will Social Security run out of money? Here’s what could happen to your benefits if Congress doesn’t act Georgia AG Carr Warns Georgians to Beware of Romance Scams | FBI Warning North Macedonia President Walks Girl With Down’s Syndrome To School After She Was Bullied What […]
General Sources: Autism Society’s Capital Connection 12-16-2021 (reviewing Build Back Better Act) National Health Care Spending in 2020: Growth Driven by Federal Spending in Response to Covid-19 (Health Affairs) House Advances Build Back Better Act (Health Affairs) Indirect Gift Tax Considerations for 2021 (The Tax Advisor) Smart moves to make with your retirement portfolio before […]
