Category Archives: Tax News & Comment

In an era of budget surpluses not seen in 30 years, President Clinton has proposed tax reductions, marriage penalty relief, increased charitable contribution deductions, and the following credits: (i) a new college credit, (ii) a long-term health care credit, (iii) … Continue reading →

Finding the existence of an “implied agreement” whereby the decedent was to retain the possession and enjoyment of, and the right to income from, property transferred to a family limited partnership (FLP), the Tax Court has held that the FLP … Continue reading →

Tenancy in common (TIC) interests have become extremely popular as replacement properties in like kind exchanges. A TIC interest represents an ownership slice of a larger fee interest, which is evidenced by an individual deed. A TIC owner possesses the … Continue reading →

On May 17th, President Bush signed into law the “Tax Increase Prevention and Reconciliation Act of 2005,” which provides $70 billion in tax incentives, extends the 15% capital gains and dividend rates through December 31, 2010, and increases the AMT … Continue reading →

The Tax Court, in a Regular Opinion, held that taxpayer, who was the subject of collection activity through notices of levy, had been deprived of neither his right to (i) meaningful judicial review, despite the fact that no written or … Continue reading →

The Tax Court, in a Regular Opinion, held that taxpayer, who was the subject of collection activity through notices of levy, had been deprived of neither his right to (i) meaningful judicial review, despite the fact that no written or … Continue reading →

Many wills drafted prior to EGTRRA employ “formula” clauses eliminating estate tax on the death of the first spouse by creating a “credit shelter” trust funded with assets equal to the unused applicable exclusion amount (AEA), and then distributing the … Continue reading →

The Tucker Act, 28 U.S.C. §1491 (1887), granted the U.S. Claims Court jurisdiction to “render judgment upon any claim against the United States founded . . . upon the Constitution,” waiving sovereign immunity with respect to lawsuits arising out of … Continue reading →

In TAM 9842003, the IRS rejected a 60% valuation discount claimed with respect to the transfer of $1.8 million of securities and real estate to a NY FLP created six weeks before the decedent’s death, claiming that (i) the partnership … Continue reading →

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 →