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….
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…
2019 Standard Mileage Rates
On December 14, 2018, the IRS released optional standard mileage rates for 2019, determined in accord with Rev Proc 2010-51, 2010-51 IRB 883. The IRS provided rates to be used in determining deductible costs of operating automobiles for business to be 58¢ per mile, for charitable work at 14¢ per mile, and for medical/moving purposes…
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…
Texas Supreme Court – Can’t Sue for Interference with Inheritance Rights in Texas
On June 22, 2018, the Texas Supreme Court finally answered the question of whether Texas courts will recognize a claim that someone can interfere with the “inheritance rights” of another. The Court flatly said, “No.” This had been an issue about which lower Texas courts had been divided. Some of the Courts of Appeals said…
Do-It-Yourself Wills
Do-it-yourself wills present a lot of problems. One problem is highlighted in a recent Texas Supreme Court case, Knopf v. Gray, decided March 23, 2018. In that case, the parties were in a dispute over the ownership of a tract of land. Vada Wallace Allen died, leaving a do-it-yourself will. She specifically referred to 316…