Category Archives: Tax Decisions

With estate tax repeal scheduled to occur in 2010, but reinstatement to follow in 2011, estate planning documents must be sufficiently flexible to operate in either tax regime, or any other that Congress or a later administration determines. Wills and … Continue reading →

The 2001 Act repeals the estate and GST tax for decedents dying after December 31, 2009. The top marginal estate tax rate, now 55%, will decrease incrementally to 45% in 2007. The estate tax exemption, now $1 million, will rise … Continue reading →

The Supreme Court, resolving a conflict among the circuits, has held that the exclusion from gross income provided for by IRC Sec. 104(a)(2) for the “amount of any damages received…on account of personal injuries” does not extend to punitive damages.  … Continue reading →

The 5th Circuit, in Estate of Jameson v. Comr., 267 F.3d 366, made further inroads into the doctrine of precluding valuation discounts for built-in capital gains. Reversing the Tax Court, it held that a full discount for accrued capital gains … Continue reading →

The National Office in FSA 200119013 held that where the decedent’s estate included 50% of the shares of a closely held corporation, as well as a general power of appointment over 44% of the shares pursuant to a marital deduction … Continue reading →

The 2002 Tax Act provides $38.7 billion in tax incentives; most for businesses with modest incentives for individuals. Of particular interest is a new provision which allows an additional 30% depreciation deduction in the first year. The Act also contains … Continue reading →

Departing starkly from a body of decisional law burnished by time in the lower courts, the Supreme Court, in United States v. Craft, No 001831(4/17/02) reversing the 6th Circuit, held that a spouse’s interest in entireties property constitutes property or … Continue reading →

Final Regs. governing required minimum distributions (RMDs) from qualified plans and IRAs adopt, in modified form, the simplified rules proposed in 2001. Among them: (i) new tables of life expectancies for calculating RMDs; (ii) a new date for determining the … Continue reading →

In a lengthy opinion, the Tax Court voided the claimed tax benefits of an intricate sale-leaseback transaction involving foreign partners presumed immune from U.S. tax, and upheld an IRS income assessment of $87 million and a disallowance of $50 million … Continue reading →

Final regulations have been issued which govern required minimum distributions from IRAs and qualified plans. They generally follow the scheme articulated in the proposed regulations issued in January, 2001. Their use is mandated on January 1, 2003, but optional for … Continue reading →

On certiorari, the Supreme Court, in a 6-3 decision written by Justice O’Connor, voided New York Tax Law § 631(b)(6), which the Court held violated the Privileges and Immunities Clause of the Constitution by effectively denying only nonresidents of New … Continue reading →

Finding that 76 shares of voting stock of a closely held corporation were each worth $215,539, rather than $2,650 as had been reported, the Tax Court upheld most of a $17,643,886 deficiency asserted against the Estate of Richard R. Simplot, … Continue reading →

The conveyance by taxpayers of their house (in which they continued to reside) to their children for no consideration, one year after the issuance of a Notice of Deficiency, three years prior to tax assessment, and eight years prior to … Continue reading →