Can Defective Deed Defeat IRS Estate Tax Lien?

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…

Tax Benefit Rule & Transfers at Death

Tax Benefit Rule & Transfers At Death

A sole proprietor incurred a business expense. He dies in the same year. The business expense was for property that would last more than one year. Does the business owner’s estate have to report the amount of the deduction as income? This question is answered by considering the tax benefit rule. The court addressed this…

IRS Estate Tax Liens: Helpful or Harmful?

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 Tax Valuation vs. Income Tax Valuation

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 Plans in Uncertain Times

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…

Basic Estate Administration and Taxes: Elections & Timing

Basic Estate Administration And Taxes: Elections & Timing

This post is written to remind non-tax attorneys who administer estates of a few basic tax issues that must be considered in administering estates. From a tax perspective, estate administration is all about making elections and timing distributions, income and expenses. IRC 441 The first group of elections involves selecting tax years. IRC § 441…