Estate & Gift Tax Tax

Avoiding Gift Taxes With Formula Clauses

Congress has slowly upped the amount that can be transferred free of estate and gift taxes. This amount has changed over time. It was $1 million in 2003. It is now just over $11.5 million in 2020. This means that many people do not need to worry about estate and gift taxes. Estate and gift […]

Estate & Gift Tax Tax

Can the IRS Collect Gift Tax From Recipient After 14 Years?

If someone gives you property and then dies and more than ten years has passed since the gift, can the IRS sue you to collect the amount of the gift from you? Most would think the answer is a resounding “no,” as the recipient isn’t liable for unpaid gift taxes and the statute of limitations […]

Estate & Gift Tax Tax

Can Defective Deed Defeat IRS Estate Tax Lien?

The IRS lien is broad and attaches to the taxpayer’s property. Creative tax attorneys have tried to find ways around the lien with limited success. The recent Saccullo v. United States, No. 17-14546 (11th Cir. 2019) case raises the question as to whether a defectively executed deed be used to defeat the IRS’s estate tax […]

Estate & Gift Tax Tax

Tax Benefit Rule Does Not Apply to Transfers at Death

If a sole proprietor is able to deduct an expense he incurred in the year he died for property that was not used up in the year he died, must his estate then report the amount as income in the following year for the amount of taxes saved by the deduction in the prior year? […]

Estate & Gift Tax Tax

IRS Estate Tax Liens: Helpful or Harmful?

It can take years, if not decades, to resolve property disputes resulting after someone dies. The IRS is often not a direct party to these disputes, but it usually has an interest in what happens to the property.  The IRS uses the general unfiled estate tax lien to protect its interest in a decedent’s assets.  While […]

Estate & Gift Tax Tax

Estate Tax Valuation vs. Income Tax Valuation

The question in Janis v. Commissioner is whether a taxpayer can claim that property has a low value for estate tax purposes and then turn around and claim that the property has a high value for income tax purposes. The Ninth Circuit said “no,” but the answer could have been different under slightly different facts. […]

Estate & Gift Tax Tax

Estate Plans in Uncertain Times

With 2006 fast approaching I can’t help but pause to think about our estate and gift tax regime. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 changed the rules of the game. Following the enactment of EGTRRA estate planners and tax attorneys went to work defining and clarifying how estate plans should […]