This edition is the first of a “few” which will be devoted to information gleaned from the American Bar Association’s Real Property, Trusts and Estates’ Spring Symposium in Washington, DC and will be my summary of a few selected sessions. Hopefully this will be of some interest to all of you. Hot Topics Breakfast Richard…
Author: James V. Roberts
Income Tax Item – Charitable Deduction Fails
Sadly, Kenneth and Susan Kunkel were turned down by the United States Tax Course on April 8, 2015 in their case against the Commissioner of Internal Revenue. The bulk of their dispute revolved around non-cash donations. For all donations of $250 or more, taxpayers generally must obtain a contemporaneous written acknowledgment from the donee. Additional…
Finished Outline for Advanced Estate Planning Course
Yesterday, I finished and turned in my outline/article for the Advanced Estate Planning Course. I’ve been honored to be selected to be one of the speakers. The title of my talk is, “Extent and Limits of Spendthrift Protection – Creditors and Divorce.” For those of you who are attorneys and who will be attending the…
NOLO Riverboat Pilot Sunk by IRS
On February 18, 2015, the United States Tax Court handed down its decision in 436 Ltd. v. Commissioner, in which Robert Heitmeier, the taxpayer, was sunk by the IRS, losing his claimed deductions in a Joe Garza vintage Son-of-BOSS tax shelter. Two takeaways: Son-of-BOSS tax shelters are almost always losers, and, when you think you…
Estate Loses Entire Charitable Income Tax Deduction
On February 19, 2005, the United States Tax Court decided the case of Eileen S. Belmont v. Commissioner. Eileen Belmont’s Will gave the residue of her estate to the Columbus Jewish Foundation. The executor elected to deduct that on the Estate’s income tax return, claiming that $219,580 would go to the Foundation. But litigation ensued…
Taxpayer Unable to Recover Legal Fees from IRS
On February 2, 2015, the United States Tax Court issued an opinion in the case of Estate of Roderigo F. Fenta v. Commissioner. Mr. Fenta, the taxpayer, on the Lakeside Lounge for over 30 years until he sold it in November 2010. He was audited and the IRS proposed a deficiency of $13,180 and an…
Severe Liability Imposed on Agent When Not Using Power of Attorney – Action Needed
Severe Liability Imposed on Agent When Not Using Power of Attorney – Action Needed On January 30, 2015, the Tyler Court of Appeals handed down its decision in Jordan v. Lyles, and held that Cynthia “Cyndi” Lyles, the agent named by her step-father, Bud Jordan, in a power of attorney, was liable to return to…
March Applicable Federal Rates Go Down
The rates went down for March. The 7520 rate, used extensively in estate planning, dropped from 2.0% to 1.8%, down from 2.2% the month before. The mid-term AFR is down to 1.47%, a drop from 1.70% last month.
Rare Case Where Non-Owner Gets to Deduct Home Interest Payments
In most cases, where someone who is not an owner of property pays mortgage payments and property taxes, neither the IRS nor the courts allow that person to take a deduction for the interest paid on the mortgage or the taxes. However, the Tax Court made a rare exception in the case of Qui Van…
Incompetent Attorney Not Enough to Avoid Penalties
In the case of Specht v. United States, executors of a decedent’s estate sued to get a refund of late-filing penalties. The US District Court found that malpractice by the estate’ attorney, who was later declared incompetent, did not provide reasonable cause for the late filing of the federal estate tax return. Basically, the Court…