Seven Tax-Planning Strategies to Dodge the Tax Bullet – Forbes

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

Seven Tax-Planning Strategies to Dodge the Tax Bullet – Forbes.

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Is 95% of the Trade Imbalance Legal Tax Evasion? – Forbes

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

Is 95% of the Trade Imbalance Legal Tax Evasion? – Forbes.

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DOMA’s Tax Hassles for Same-Sex Couples – Forbes

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

DOMA’s Tax Hassles for Same-Sex Couples – Forbes.

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France’s Hollande wants 75% tax on rich – Mar. 29, 2013

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

France’s Hollande wants 75% tax on rich – Mar. 29, 2013.

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wills

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

wills

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Portability of Estate Tax Exclusion — Did Congress Guild the Lily?

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

View in PDF:   Tax News & Comment — February 2013

I.     Introduction

As part of the 2010 Tax Act, Congress enacted a statute allowing a surviving spouse to utilize the unused portion of the predeceasing spouse’s lifetime estate tax exemption. This option offers protection to spouses who have not engaged in any estate planning. However, persons with estates large enough to benefit from the provision would in most cases be remiss in relying solely on the efficacy of portability as the cornerstone of their prudent estate plan.  The problem which Congress sought to ameliorate would arise where the predeceasing spouse made a sizeable bequest to the surviving spouse of the entire estate. While this disposition would succeed in eliminating estate tax at the death of the first spouse by virtue of the unlimited marital deduction, it would also entirely waste the lifetime exclusion of the predeceasing spouse. Continue reading →

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Elder Law Planning: Deciphering the Puzzle

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

View in PDF:  Tax News & Comment — February 2013

Elder Law Planning:  Deciphering the Puzzle

I.       Social Security

The Social Security program, begun during the Great Depression under President Roosevelt, is the forerunner of Medicare and Medicaid. The largest program under the Social Security Act is that which provides for retirement benefits. The monthly retirement benefit is a function upon two variables: the recipient’s earnings record (which is tracked by the Social Security Administration automatically) and the age at which the recipient chooses to begin receiving benefits. The recipient’s monthly income benefit is based on the highest 35 years of the recipient’s “covered earnings.” Covered earnings in any year cannot exceed the Social Security Wage Base, which is also the maximum amount of earnings subject to the FICA payroll tax. In 2013, that amount is $113,700. Continue reading →

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State Individual Income Tax Rates – 1-1-2013 – ind_inc.pdf

Posted on April 2, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

State Individual Income Tax Rates – 1-1-2013 – ind_inc.pdf.

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Do high taxes prompt millionaires to flee? – Global Public Square – CNN.com Blogs

Posted on April 1, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

Do high taxes prompt millionaires to flee? – Global Public Square – CNN.com Blogs.

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Section 1031 | JD Supra Law News

Posted on April 1, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

Section 1031 | JD Supra Law News.

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Portability of Estate Tax Exclusion — Did Congress Guild the Lily?

Posted on February 22, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

View in PDF:   Tax News & Comment — February 2013

I.     Introduction

As part of the 2010 Tax Act, Congress enacted a statute allowing a surviving spouse to utilize the unused portion of the predeceasing spouse’s lifetime estate tax exemption. This option offers protection to spouses who have not engaged in any estate planning. However, persons with estates large enough to benefit from the provision would in most cases be remiss in relying solely on the efficacy of portability as the cornerstone of their prudent estate plan.  The problem which Congress sought to ameliorate would arise where the predeceasing spouse made a sizeable bequest to the surviving spouse of the entire estate. While this disposition would succeed in eliminating estate tax at the death of the first spouse by virtue of the unlimited marital deduction, it would also entirely waste the lifetime exclusion of the predeceasing spouse. Continue reading →

Posted in Estate Planning, Lifetime Exclusion, Portability | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment

Use of Disclaimers in Pre and Post-Mortem Estate Planning

Posted on February 22, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

View in PDF:  Tax News & Comment — February 2013

Introduction

Disclaimers can be extremely useful in estate planning. A person who disclaims property is treated as never having received the property for gift, estate or income tax purposes. This is significant, since the actual receipt of the same property followed by a gratuitous transfer would result in a taxable gift. Although Wills frequently contain express language advising a beneficiary of a right to disclaim, such language is gratuitous, since a beneficiary may always disclaim. Continue reading →

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Elder Law Planning: Deciphering the Puzzle

Posted on February 14, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

View in PDF:  Tax News & Comment — February 2013

Elder Law Planning:  Deciphering the Puzzle

I.       Social Security

The Social Security program, begun during the Great Depression under President Roosevelt, is the forerunner of Medicare and Medicaid. The largest program under the Social Security Act is that which provides for retirement benefits. The monthly retirement benefit is a function upon two variables: the recipient’s earnings record (which is tracked by the Social Security Administration automatically) and the age at which the recipient chooses to begin receiving benefits. The recipient’s monthly income benefit is based on the highest 35 years of the recipient’s “covered earnings.” Covered earnings in any year cannot exceed the Social Security Wage Base, which is also the maximum amount of earnings subject to the FICA payroll tax. In 2013, that amount is $113,700. Continue reading →

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2012 Regulations, Rulings & Pronouncements of Note

Posted on February 14, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

View in PDF:  Tax News & Comment — February 2013

2012 Regulations, Rulings & Pronouncements of Note

I.   Taxpayer Advocate Report

National Taxpayer Advocate Nina E. Olson issued the agency’s annual report to Congress on January 9, 2013. The report cited the dire need for tax reform and simplification of the Code. Underfunding of the IRS, identity theft and return preparer fraud were also identified as chronic problem areas. The report found that the existing Code makes compliance difficult, and requires taxpayers to spend “excessive time” in preparing their returns. The Code also “obscures comprehension, leaving many taxpayers unaware of how their taxes are computed. . . it facilitates tax avoidance by enabling sophisticated taxpayers to reduce their tax liabilities and provides criminals with opportunities to commit tax fraud.” Continue reading →

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2012 Gift & Estate Tax Decisions of Note

Posted on February 14, 2013 by David L. Silverman, J.D., LL.M. (Taxation)

View in PDF:  Tax News & Comment — February 2013

2012 Gift & Estate Tax Decisions of Note

I.    Formula Clauses

The Tax Court in Wandry v. Com’r, T.C. Memo 2012-88, nonacq., 2012-46 I.R.B. upheld a defined value clause containing a formula transfer clause. The case is significant since it seemingly vanquished the last vestiges of Proctor v. Com’r, 142 F.2d 824 (4th Cir. 1944) which had invalidated savings clauses as violating public policy, and marks the first time that a court affirmatively sanctioned the use of formula clauses in cases not involving a charitable overflow beneficiary. Some believe that reliance on Wandry may be risky until other Circuits opine. [See Tax Court Defies IRS: Expands Use of Defined Value Clauses, Tax News & Comment, October 2012.] Continue reading →

Posted in Gift & Estate Tax Decisions of Note, Gift Tax Planning, News, Tax Decisions, Tax News & Comment | Tagged , , , , , , , , , , , , , , , , , , , , , , | Leave a comment