Category Archives: Tax Decisions

PLR 200540004 illustrates the importance of carefully drafted marital trusts. The federal estate tax return incorrectly claimed a deduction for only the actuarial value of the spouse’s income interest, rather than for the entire interest, including the remainder interest. The … Continue reading →

No reduction in individual rax rates appears likely in 2007. Although some Democrats favor rate decreases for middle and lower-income individuals, Mr. Bush has long been a proponent of across-the-board decreases. Conversely, tax increases for high income individuals also appears improbable at the present, despite vocal support from some Democratic leaders, including incoming House Majority Leader Speaker Nancy Pelosi (D-Calif.). Continue reading →

The 2nd Circuit, affirming an order granting summary judgment to the United States, held that payments by an estate to charities pursuant to a testamentary power of attorney exercised by the surviving spouse over the principal of a marital trust, … Continue reading →

The Code is the primary statutory source of federal tax law. Treasury Regulations which are administrative, rather than statutory, illuminate many individual Code provisions, and often provide examples. “Proposed” Regulations, which do not have the force of law (LeCroy Research Systems Corp. v. Com’r., 751 F.2d 123 (1984)) provide guidance upon which the taxpayer may rely pending IRS approval of “Final” Regulations, published in the form of a “Treasury Decision,” which also usually contains a preamble summarizing pertinent taxpayer comments to the Proposed Regulations. Continue reading →

The Tax Court approved “tiered” discounts in Ashford v. Com’r., T.C. Memo, 2008-128. A family limited partnership owned a 50% general partnership interest in another partnership which owned Minnesota farmland. The 50% interest was noncontrolling, since neither 50% general partner … Continue reading →