The New Bernie Sanders Estate Tax Act In case you were wondering what Democrats are thinking about where they would like to take the estate tax laws, Thursday Senator Bernie Sanders (I-Vt.) clarified that by filing S. 309 named “For the 99.8% Act.” The act would radically modify federal estate, gift and generation-skipping transfer taxes….
Category: Tax
Applicable Federal Rates for January
Every month, IRS and the Treasury issue a Revenue Ruling listing the “applicable federal rates” (“AFRs”) for the next month. In Rev.Rul. 2019-3, 2019-IRB (https://www.irs.gov/pub/irs-drop/rr-19-03.pdf), the January annual short-term, mid-term and long-term rates are set at 2.72%, 2.89% and 3.15%, respectively. The 7520 rate is 3.4%, down from 3.6% in November and December, and…
Tesla Credit Phase-Out
For quite some time, purchasers of electric vehicles have received a special tax credit. That tax credit has been a boon to those who have purchased Tesla automobiles. However, that’s coming to an end. In IR 2018-252 issued December 14, 2018, and in Notice 2018-96, 2018-52 IRB (https://www.irs.gov/pub/irs-drop/n-18-96.pdf), the IRS said Tesla has sold more than…
Affordable Care Act Ruling
By now, most have heard that a federal judge has ruled that the Affordable Care Act (aka Obamacare) is unconstitutional. What some have heard is that the ruling was based on the elimination of the tax penalty under the tax law passed at the end 2017, generally referred to as the Tax Cuts and Jobs…
New IRS Notice – No Clawbacks
In December 2017, Congress passed, and the President signed, the “new tax law” which originally was named the “Tax Cuts and Jobs Act” or “TCJA” (but in the budget reconciliation process, the act lost its name). In that new law, Section 2010(c)(3) was amended to provide that for decedents dying and gifts made after 2017…
Bunching and QCD (New IRS Notice)
The debate is over when it comes to deductions of business meal expenses. Changes caused by the new tax law passed in December 2017 ruled out all deductions for any kind of entertainment expense. Commentators debated whether business meals would continue to be deductible. Some, like me, thought the change would do just that. Some…
2019 Gift, Estate, Other Tax Numbers Announced
The unified estate and gift tax exclusion amount will increase from $11,180,000 to $11,400,000. The GST exemption will rise accordingly. The annual gift tax exclusion will remain $15,000. The special use valuation reduction limit will rise from $1,140,000 to $1,160,000. The annual exclusion for gifts to non-citizen spouses will increase from $152,000 to $155,000. The…
Alternative Minimum Tax Exposure (AMT)
The recent tax bill passed by Congress and signed by the President is generally being referred to as the Tax Cuts and Jobs Act of 2017 and makes some sweeping changes in income tax laws. The intent of this post is simply to educate you on one broadly touted change in the tax law that…
More on New Tax Act
This is another letter to update you on an aspect of the new tax act. This one deals with the new limitations on deductions for state and local taxes, and, in particular, property taxes. This is not intended as legal advice for your particular situation, so please consult your tax advisor ASAP. Much has been…
Tax Cuts and Jobs Acts of 2017
The recent tax bill passed by Congress and signed by the President is generally being referred to as the Tax Cuts and Jobs Act of 2017 and makes some sweeping changes in income tax laws. The intent of this letter is simply to educate you on one aspect of its impact on charitable giving (this…