Federal Income Taxation Chapter 17 Taxation and the Family
|
|
- Elisabeth Craig
- 5 years ago
- Views:
Transcription
1 Presentation: Federal Income Taxation Chapter 17 Taxation and the Family Professor Wells November 1,
2 Chapter 17 Whose Income is It? p.983 Class Syllabus (page 7) has the following organizing questions: 1. Is a particular item income or does it give rise to a tax deduction? 2. When is the proper time period for recognizing an item of income or expense (including the capitalization of expenses)? 3. What is the character of the item of income (e.g., capital gains and losses)? 4. Who is the true taxpayer for reporting the item of income or expense? 5. What is the type of taxpayer that must report the item of income or expense (individual, corporation, partnership, limited liability company, trust, estate, resident or nonresident) and are their special rules for this type of taxpayer? Corollary Questions: 1. What are the guiding legal principles for determining who is the taxpayer? whose income? whose deductions? 2. How can one have multiple runs up the bracket ladder? 3. When can one attribute income/deductions to another taxpayer? 2
3 Choices for Identifying the Taxpayer Unit p.917 Choices for possible income/deduction shifting: 1) spouses; 2) children; 3) other family members; 4) family entities (trusts, corporations & partnerships) Alternative: the entire family (how defined?) Cf., perspective of other cultures 3
4 Comparing Income Tax Rates p.917 Rate Brackets and Marginal Rates for individuals - Code 1(a)-(d) & (h) Marginal rates - tax rate applicable to the last taxable dollar. Cf., effective rate (or average rate). Tax rates for corporations: Code 11. 4
5 Assignment of Income Who is the Taxpayer? p.983 Tax planning objective: Deflect income to a lower bracket taxpayer. Lucas vs. Earl, p A contractual agreement concerning allocation of wages of spouses after their marriage. Held: income is taxable to the person earning the wages (not the legal owner). Note: the fruit and tree doctrine. NOTE: 704(e) permits recognition of those partners who have a capital interest in the partnership where capital is a material income-producing factor. 5
6 Community Property Law to Husband & Wife Poe v. Seaborn p.984 Facts: The Seaborns lived in Washington, which was a community property state. Mrs. Seaborn reported on her tax return half of the community income, including half of Mr. Seaborn s salary. The Commissioner took the position that all of the income must be reported by Mr. Seaborn. Held: The Commissioner s determination is rejected. Mrs. Seaborn, under Washington law, had a vested right in the community property... including salaries. Lucas v. Earl is distinguished by stating, The very assignment in that case was bottomed on the fact that the earnings would be the husband s property, else there would have been nothing on which it could operate, whereas here by law, the earnings are never the property of the husband, but that of the community. 6
7 Same-Sex Couples p.991 (Windsor & Rev. Rul ) 1. Historically, the IRS stated that the Defense of Marriage Act prevented the IRS from allowing same-sex couples from filing tax returns as married couples. C.C.A consistent with this position. 2. California changed its law to allow community property between same-sex couples, and the IRS said that they would respect this income-splitting in C.C.A In U.S. v. Windsor, the Supreme Court held that section 3 of DOMA violates the principles of equal protection. 4. In Rev. Rul , issued on August 29, 2013, the IRS ruled that post-windsor that marriage would be construed to include same-sex marriages if the marriage were entered into in a state that recognized such marriages. Once entered into, that married status would be respected for federal tax purposes regardless of the laws of the state where the couple resides. 7
8 Considering the Marriage Bonus/Penalty p.999 Effect of joint return income tax status twice the tax on 1/2 of combined income. Objective: To enable equality with community property jurisdictions where an automatic split of the income occurs under state law. 8
9 Marriage Penalty/Bonus: Code 1 (2016 Rates) Bonus (only one earner): Single taxpayer & married taxpayer have taxable income of $466, ,082 tax (single) vs. 130,579 (married); $10,503 benefit for marrieds. Penalty (two equal earners): Two single taxpayers & each married taxpayer has income of $233,475 single taxpayers have 60,576 tax each (total $121,152); married taxpayers have $130,579 of tax; $9,427 penalty for marrieds. 9
10 Reasons to Treat Married Couples Differently Costs of children (limited to marriage?). But, imputed income of the non-working spouse; provide deduction for the second wage-earner? Costs of working for both spouses (rather than collecting investment income). Should the ability to pay tax liabilities be based on the wealth accession for the family unit? Should parents be required to include income of minor children? 73 provides for separate taxpayer treatment of the child. 10
11 Marriage Penalty/Bonus: Mapes v. United States p.999 Mapes argues that tax rates create a marriage penalty and that this is unconstitutional. Court upheld existing tax rates as constitutional. Court noted that [T]here cannot be a marriage-neutral tax system. The policy of taxing all couples with equal incomes equally, a major factor in the 1948 income-splitting provision, is not unreasonable. Nor is it unreasonable to attempt to tax the household economies enjoyed by married people.... In short, the foregoing serves to illustrate that tax disparities will exist no matter how the rates are structured. This is simply the nature of the beast. The tax law is complicated enough already without the added complexity a full solution to this problem would apparently require. We in the judiciary, are neither equipped nor inclined to second guess the legislature in its determination of appropriate tax policies. 11
12 Boyter v. Commissioner p Taxpayers got divorced in Haiti in December 1975 and came back home and got remarried in January Taxpayer then got divorced in Dom. Rep. in November 1976 and got remarried in February Taxpayers claim they were unmarried at the end of 1975 and 1976 and filed as single taxpayers. IRS argued that the taxpayers were taxable as married individuals regardless of what state law would say. Court upheld IRS determination. The court applied the sham transaction doctrine to find that the divorces were shams and should not be given any tax significance. 12
13 Children and Dependents p.1025 Kiddie Tax under 1(g). Dependent Personal Exemptions available under 152 if parent provides more than half of the child s support for the year Standard Deduction allowed under 63. Child Tax Credit under
14 Bernatschke v. United States p.1031 FACTS: Taxpayers get divorced and husband transferred annuity to wife. Issue: Is this annuity payment alimony (subject to 71) or is it an annuity payment made to the owner of the annuity (subject to 72)? Held: This was a property settlement and wife became owner of annuity and thus entitled to 72 treatment. Subsequent events: 1. Alimony is now deductible by payor and taxable to payee. 2. No longer have need to prove amount is subject to legal obligation to be alimony but parties can now designate whether an amount is or is not alimony. 14
15 Current Divorce Tax Principles p.1037 Code 71(a) & (c) now apply: alimony is received as gross income. A federal definition of alimony applies. A deduction is available to the payor - Code 215. No deduction for child support. 15
16 Alimony & Support Payments- p.1037 Income Tax Treatment No deduction and no income inclusion for child support and all other payments. All non-alimony payments (as alimony is defined in the tax code) made to the former spouse are: (1) not income to the recipient, and (2) are not deductible to the payor. These items do constitute an accession to the wealth of the recipient (former) spouse. Custodial parent entitled to child s dependent personal exemption but parent s can agree otherwise. 16
17 Indirect Alimony Payments Example: Sally and Harry divorce. She pays (1) his mortgage payments on his residence and (2) premiums on a life insurance policy on her life & he owns the policy. Question: Is this taxable alimony? Is this cash paid. Answer: Yes, taxable alimony to Harry if Harry owns (1) the house and (2) the life insurance policy. Remember the Old Colony Trust Co. case. But, if Sally s payment is not cash, then the answer is different. 17
18 Alimony Requirements - Inclusion & Deduction Code 71(b) specifies the following alimony requirements: 1) Cash payments (not property). 2) Payment received under an instrument. 3) Payments must not be agreed to be nontaxable to the payee and nondeductible by the payor. Can opt out per 71(b)(1)(B). 4) Payments cannot be among members of same household 5) Terminate the obligation at the death of the payee. 71(b)(1)(D). 6) No disguised child support Also, no excessive front-loading. 71(f). 18
19 Disguised Child Support? Alimony being paid is gross income to wife. Can some of this amount really be disguised child support? 71(c)(2). If total payment is insufficient in amount issue is what ordering rule is applicable in identifying the type of payment. Ordering rule of 71(c)(3) - payments are considered as first being child support before being deductible alimony. 19
20 Questions 1. Max and Winifred were divorced last year. To avoid a hassle, Winifred agrees orally to pay him $2,000 per month as spousal support. Will Winifred be allowed a deduction for the payments? Must Max report the payments as income? 2. Suppose Manuel and Wanda have decided to dissolve their marriage. Manuel and Wanda have decided that for each of the next two years Manuel should pay Wanda $60,000, while she finishes law school; that he should pay her $5,000 per year for the succeeding two years; and that at the end of four years there should be no more payments. If the terms of this agreement are incorporated in a decree of divorce, what will be the tax consequences to Manuel and Wanda? 3. Suppose the facts are the same as in Problem 2, except that Wanda has a father, Fred, who lives with Manuel and Wanda and is dependent on them, and that the agreement provides that if Wanda dies during the four-year period in which payments are required, the payments will be made to Fred. Moreover, during the four years, Manuel is required to pay for an insurance policy on Wanda s life, with Fred as beneficiary. What are the tax consequences to Manuel, Wanda, and Fred? 4. Suppose Mike and Wilma have a son, Carlos, who is two years old. Mike is a successful lawyer. Wilma was also a successful lawyer, but quit practice when Carlos was born, with the understanding that she would care for him until he reached age 12 and then would return to work. Mike and Wilma have decided to end their marriage and have agreed that Mike will pay Wilma $40,000 a year for ten years, but with the obligation to terminate if Carlos should die sooner. What will be the tax consequences to Mike and Wilma? 5. Suppose that the marriage of Nancy and John is dissolved by a judicial decree that requires that Nancy pay John spousal support (alimony) of $10,000 per year. When the payment becomes due in the first year after the decree is entered, Nancy offers to transfer to John, in settlement of her obligation to pay the spousal support, shares of stock of IBM with a fair market value of $10,000 and a basis in her hands of $1,000. Suppose that John would be legally entitled to insist on payment in cash and that no other form of payment had been contemplated at the time of the dissolution. If John accepts the IBM stock in satisfaction of Nancy s obligation, what are the tax consequences to him and to Nancy? What if the same events occur in the second year following the dis- solution of the marriage? Regs T, A-7 provides that [a] transfer of property is treated as related to the cessation of the marriage if the transfer is pursuant to a divorce or separation instrument... and the transfer occurs not more than 6 years after the date on which such marriage ceases. 20
21 United States v. Davis p.1041 Issue: Is transfer of separate property to estranged spouse taxable? Holding: Transfer of appreciated property to spouse (pursuant to a separation agreement that was later incorporated in a divorce decree) was a taxable disposition on which the husband realized and recognized gain equal to the excess of the property's fair market value over its adjusted basis. Subsequent Events: the Davis case was largely supplanted by Congress in 1984, when it enacted 1041 to provide nonrecognition of realized gains and losses on transfers of property between spouses or, if the transfer is incident to a divorce, between former spouses. Remaining Validity: Davis continues to control transactions between spouses that fall outside the aegis of 1041 (e.g., transfers to a nonresident alien spouses and an antenuptial transfers of property in settlement of any later-arising marital rights is not expressly covered by 1041). 21
22 Pre-nuptial Agreements p.1046 Farid-Es-Sultaneh v. Commissioner Issue: The tax basis for shares received in pre-nuptial transfer. What timing of (1) stock delivery and (2) agreement? Effective as of the pre-nup? Why was a tax basis step-up permitted to her for the stock she received (and not a transferred tax basis attributable to a gift transfer, i.e., 1015)? Held: FMV basis at time of receipt of stock. What did she transfer as consideration? Treatment to him on the stock transfer? 22
23 Property Settlements p.1051 Transfers between Spouses Code 1041 concerns transfers of property between divorced spouses. Davis case as the predecessor - treating the property transfer in the divorce context as a gain recognition event. Code 1041 provides (1) no recognition occurs to the transferor on the property transfer, and (2) a transferred tax basis applies to property held by the recipient. 23
24 Questions p In each of the hypotheticals, assume that Ann is obligated to pay Bob $10,000 pursuant to a court order for child support issued on their divorce. (a) In lieu of $10,000 cash, Bob accepts from Ann shares of stock of IBM for which she had paid $1,000 and that are worth $10,000 at the time of transfer. Bob later sells the shares for $9,000. See 1001, (Assume that 1041 does not apply.) (b) Ann borrows $10,000 from Thelma and pays Bob. Ann defaults on the debt to Thelma. Bob invests the $10,000 in IBM stock, which he later sells for $9,000. What are the tax consequences not only to Ann and Bob but also to Thelma? See 166. (c) Ann pays Bob $10,000. Two days later, pleading a medical emergency, Ann borrows the $10,000 back from Bob. Shortly thereafter, Ann dies, totally destitute (though she had a good job at the time of her death). (d) Ann, having failed to pay Bob the $10,000 child support obligation when it became due, executes, and delivers to Bob a negotiable promissory note, pay- able in three months and bearing interest at the market rate of 1 percent per month. Shortly thereafter, Ann dies, totally destitute. (e) Same as (d), except that before Ann dies, Bob sells the note to Thelma for $9,000. (f) What are the implications of the court s statement that the taxpayer had no basis in the debt? Suppose, again, that Ann owes Bob $10,000 for child sup- port. If she pays him the $10,000, it is excluded from Bob s gross income under 71(c). Basis seems to be irrelevant because of the statutory exclusion. But what ifbob sells or assigns his claim against Ann to a third party for $9,000? 24
25 Final Thoughts Alimony being paid is gross income to payee spouse. Can some of this amount really be disguised child support? 71(c)(2). If total payment is insufficient in amount issue is what ordering rule is applicable in identifying the type of payment. Ordering rule of 71(c)(3) - payments are considered as first being child support before being deductible alimony. 25
Chapter 7. Assignment of Income
Chapter 7. Assignment of Income A. Transfers Incident to Marriage and Divorce 1. Introduction: When a couple marries, they are entitled to file a joint return, and if such a return is filed the parties
More informationChapter 7. Assignment of Income
Chapter 7. Assignment of Income A. Transfers Incident to Marriage and Divorce 1. Introduction: When a couple marries, they are entitled to file a joint return, and if such a return is filed the parties
More informationChapter 7 p. 551 Tax Progressivity
Chapter 7 p. 551 Tax Progressivity Why seek income splitting : To moderate the impact of the progressive income tax rate structure. What is tax rate progressivity? See Code 1. What is the marginal rate?
More informationTax Aspects of Marriage, Divorce and Domestic Partnerships
Tax Aspects of Marriage, Divorce and Domestic Partnerships I. Overview Michael C. Wetzel Fitzwater Meyer, LLP 6400 SE Lake Road Suite 440 Portland, OR 97222 (503) 786-8191 mwetzel@fitzwatermeyer.com The
More informationTaxation of Trusts After Divorce: Grantor Trusts, Section 682 and International Considerations
Taxation of Trusts After Divorce: Grantor Trusts, Section 682 and International Considerations Leigh-Alexandra Basha McDermott Will & Emery LLP Richard Franklin McArthur Franklin PLLC Justin T. Miller
More informationChapter 18 p.1057 Investment Income
Chapter 18 p.1057 Investment Income Fundamental issue: How allocate unearned income (i.e., investment income) to the correct taxpayer for federal income tax purposes? Investment income belongs to the owner
More informationTaxation of Trusts on Divorce: Interception of Section 682 in Divorce. Presented to ABA RPTE Section Meeting. May 12, Boston, Massachusetts
Taxation of Trusts on Divorce: Interception of Section 682 in Divorce Presented to ABA RPTE Section Meeting May 12, 2016 Boston, Massachusetts By Leigh-Alexandra Basha Partner/Private Client Group McDermott
More informationRecent Developments in the Estate and Gift Tax Area. Annual Business Plan and the Proposed Regulations under Section 2642
DID YOU GET YOUR BADGE SCANNED? Gift & Estate Tax Recent Developments in the Estate and Gift Tax Area Annual Business Plan and the Proposed Regulations under Section 2642 #TaxLaw #FBA Username: taxlaw
More informationRevenue Ruling
CLICK HERE to return to the home page Revenue Ruling 2002-22 May 13, 2002 Gross income; transfers of property incident to divorce. A taxpayer who transfers interests in nonstatutory stock options and nonqualified
More informationSchwan Financial Group, LLC
Schwan Financial Group, LLC Charting Your Financial Future Your Exclusive Resource for Business and Estate Planning For more than three decades, our goal at Schwan Financial Group, LLC, has been to transcend
More informationFederal Income Taxation Chapter 18 Assignment of Investment Income
Presentation: Federal Income Taxation Chapter 18 Assignment of Investment Income Professor Wells November 6, 2017 1 Chapter 18 Whose Income is It? P.1057 Fundamental inquiries in this chapter: Who is the
More informationEstate Planning for Your IRA JEREMIAH W. DOYLE IV, ESQ. SENIOR VICE PRESIDENT
Estate Planning for Your IRA JEREMIAH W. DOYLE IV, ESQ. SENIOR VICE PRESIDENT Ten (+) Topics for Discussion HAVE YOU PLANNED FOR TAXES ON YOUR IRA? HAVE YOU CONSIDERED A CHARITABLE GIFT OF YOUR IRA? NET
More information17 of 17 DOCUMENTS. Copyright (c) 1996 The Virginia Tax Review Association Virginia Tax Review. Winter, Va. Tax Rev. 489
Page 1 17 of 17 DOCUMENTS Copyright (c) 1996 The Virginia Tax Review Association Virginia Tax Review Winter, 1996 15 Va. Tax Rev. 489 LENGTH: 21174 words ARTICLE: ALLOCATION OF THE JOINT RETURN MARRIAGE
More informationDefinition of "Spouse" and "Marriage
by Richard A. Naegele, J.D., M.A. Wickens, Herzer, Panza, Cook & Batista Co. 35765 Chester Road Avon, OH 44011-1262 Phone: (440) 695-8074 Email: RNaegele@WickensLaw.Com Copyright 2013 by Richard A. Naegele,
More informationChallenge. If you have any questions on the book or on planning your retirement please contact the author Marc Bautis.
Retirement Fitness Challenge The Retirement Fitness Challenge, while simple in concept, is an evolving program that presents different layers of complexity based on each retiree s unique needs. The following
More informationCRS Report for Congress
CRS Report for Congress Received through the CRS Web Order Code RS21897 July 28, 2004 Summary The Effect of State-Legalized Same-Sex Marriage on Social Security Benefits and Pensions Laura Haltzel and
More informationCOPYRIGHTED MATERIAL. Filing Status. Chapter 1
Chapter 1 Filing Status The filing status you use when you file your return determines the tax rates that will apply to your taxable income; see 1.2. Filing status also determines the standard deduction
More informationSince the benefit is computed based on net salary, a tax supplement will be payable to the recipient of the benefit, if it is taxable.
World Bank Staff Retirement Plan Payment of Spousal Support from Participant's Plan Benefit (For Participants Joining the Plan On or After April 15, 1998) The World Bank Staff Retirement Plan ("Plan")
More informationRMD Impact When a Surviving Spouse Elects to Treat the Deceased Spouse s IRA as Their Own
Published Since 1984 ALSO IN THIS ISSUE HSA Contribution Limits for Domestic Partners and Other Unmarried Individuals Versus Married Individuals, Page 3 Handling Excess IRA Contributions for 2008 and 2009,
More informationTax Treatment of Married, Separated and Divorced Persons
Tax and Duty Manual Part 44-01-01 Tax Treatment of Married, Separated and Divorced Persons Part 44-01-01 This document should be read in conjunction with Part 44 of the Taxes Consolidation Act 1997 and
More informationMemorandum. LeBlanc & Young Clients DATE: January 2017 SUBJECT: Primer on Transfer Taxes. 1. Overview of Federal Transfer Tax System
LEBLANC & YOUNG FOUR CANAL PLAZA, PORTLAND, MAINE 04101 FAX (207)772-2822 TELEPHONE (207)772-2800 INFO@LEBLANCYOUNG.COM TO: LeBlanc & Young Clients DATE: January 2017 SUBJECT: Primer on Transfer Taxes
More informationGIFTING. I. The Basic Tax Rules of Making Lifetime Gifts[1] A Private Clients Group White Paper
GIFTING A Private Clients Group White Paper Among the goals of most comprehensive estate plans is the reduction of federal and state inheritance taxes. For this reason, a carefully prepared Will or Revocable
More informationTime is running out to make important planning moves before the year s end, so don t delay.
2015 Year-end tax planning Time is running out to make important planning moves before the year s end, so don t delay. The changes in various tax provisions brought about with the 2012 Tax Act continue
More informationSummary Plan Description. for the. Vought Aircraft Industries, Inc. Protective Services. Retirement Plan
Summary Plan Description for the Vought Aircraft Industries, Inc. Protective Services Retirement Plan July 1, 2009 Subject Table of Contents Page Introduction... 1 Participation Freeze...1 Benefit Freeze...1
More informationAnswers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions
Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions The following questions and answers provide information to individuals of the same sex and opposite
More information2018 Year-End Tax Planning for Individuals
2018 Year-End Tax Planning for Individuals There is still time to reduce your 2018 tax bill and plan ahead for 2019 if you act soon. This letter highlights several potential tax-saving opportunities for
More informationSUBJECT: INCOME TAX ACT Property Transfers After Separation, Divorce and Annulment
IT INTERPRETATION BULLETIN SUBJECT: INCOME TAX ACT Property Transfers After Separation, Divorce and Annulment NO.: IT-325R2 DATE: January 7, 1994 REFERENCE: Subsection 73(1) (also sections 13, 20, 74.1
More informationRetirement and Social Security
Life Guide The Social Security Administration estimates that 96% of American workers are covered by Social Security. For most of them, their monthly Social Security check will form an important part of
More informationT.J. Henry Associates, Inc. v. Commissioner 80 T.C. 886 (T.C. 1983)
T.J. Henry Associates, Inc. v. Commissioner 80 T.C. 886 (T.C. 1983) JUDGES: Whitaker, Judge. OPINION BY: WHITAKER OPINION CLICK HERE to return to the home page For the years 1976 and 1977, deficiencies
More informationGift Taxes. An overlooked law
Gift Taxes An overlooked law By Patricia J. Villano, CPA, MBA, AEP and Joseph L. LiPari, CPA, MBA Gift taxes are too often an overlooked area of tax law. Most clients aren t aware the tax exists and are
More informationFederal Estate, Gift and GST Taxes
Federal Estate, Gift and GST Taxes 2018 Estate Law Institute November 2, 2018 Bradley D. Terebelo, Esquire Peter E. Moshang, Esquire Heckscher, Teillon, Terrill & Sager, P.C. 100 Four Falls, Suite 300
More informationTax Topics /24/14. Blanche Lark Christerson Managing Director, Senior Wealth Planning Strategist
Blanche Lark Christerson Managing Director, Senior Wealth Planning Strategist Tax Topics 2014-11 11/24/14 IRS releases 2015 inflation-adjusted numbers Last month, the IRS released its 2015 inflation-adjusted
More informationIntroduction to Estate and Gift Taxes
Department of the Treasury Internal Revenue Service Publication 950 (Rev. June 1998) Cat. No. 14447X Introduction to Estate and Gift Taxes Introduction If you give someone money or property during your
More informationEstate Planning Council of Toronto: Estate Tax Update
www.pwc.com/ca Estate Planning Council of Toronto: Ian Macdonald November 5, 2013 Agenda US Estate and Gift Tax Update 1. New Rules 2. Implications for US Citizens Living in Canada 3. Implications for
More informationSurvivor Benefits. October 14, 2014
Survivor Benefits October 14, 2014 Survivor Benefits Pre-retirement Order of entitlement Case Studies Post-retirement Order of entitlement Case studies Roles and responsibilities 3 Survivor benefits All
More informationchart RETIREMENT PLANS 8 RETIREMENT PLAN BENEFITS AVAILABLE RETIREMENT PLANS Retirement plans available to self-employed individuals include:
retirement plans Contributing to retirement plans can provide you with financial security as well as reducing and/or deferring your taxes. However, there are complex rules that govern the type of plans
More informationAll about your pension benefits
Pension Plan All about your pension benefits What type of Plan is this? What will my benefit be? When should I apply for benefits? What choices will I have when I retire? What type of plan is this? The
More informationREQUIRED MINIMUM DISTRIBUTIONS (RMDs)
REQUIRED MINIMUM DISTRIBUTIONS (RMDs) Everything you need to know about Required Minimum Distributions. What are required minimum distributions (RMDs)? A required minimum distribution, also referred to
More informationESTATE PLANNING 1 / 11
2 STARTING A BUSINES RETIREMENT STRATEGIE OPERATING A BUSINES MARRIAG INVESTING TAX SMAR ESTATE PLANNIN 3 What happens to my money and assets after I die? No matter what your age or income, you need to
More informationAN EXAMINATION OF FEDERAL TAX RULES IMPACTING MARRIED SAME-SEX COUPLES FROM THE U.S. SUPREME COURT RULING IN U.S. v WINDSOR
AN EXAMINATION OF FEDERAL TAX RULES IMPACTING MARRIED SAME-SEX COUPLES FROM THE U.S. SUPREME COURT RULING IN U.S. v WINDSOR Ahroni, Scott Queens College of the City University of New York Silliman, Benjamin
More informationCHAPTER TEN Transfers to/for a Spouse
CHAPTER TEN Transfers to/for a Spouse Objective: Property transfers to the spouse to enable him/her to have financial support during survivorship period from the entire marital estate. Avoid dilution for
More informationRequired Minimum Distributions (RMDs)
Weller Group LLC Timothy Weller, CFP CERTIFIED FINANCIAL PLANNER 6206 Slocum Road Ontario, NY 14519 315-524-8000 tim@wellergroupllc.com www.wellergroupllc.com Required Minimum Distributions (RMDs) March
More informationEstate and Gift Tax Planning Opportunities for 2009
01.13.09 Estate and Gift Tax Planning Opportunities for 2009 Although financial markets are as confused, depressed and frozen as they have been in the lifetimes of most living Americans, clients should
More informationPREPARING GIFT TAX RETURNS
PREPARING GIFT TAX RETURNS I. Overview A sample 2014 gift tax return illustrating several different types of gifts is attached at Tab A. The instructions for the 2014 gift tax return can be found at Tab
More informationPresenting a live 90-minute webinar with interactive Q&A. Today s faculty features:
Presenting a live 90-minute webinar with interactive Q&A Grantor Trusts After Divorce: Tax Reform, Fiduciary Challenges, and Minimizing Tax for Trust Transfers to Former Spouse Gift Tax Exemption on Divorce
More informationThis applies even if another person does not actually claim the taxpayer as a dependent. A taxpayer who
Personal Exemptions Introduction Identifying and entering the correct number of exemptions is a critical component of completing taxpayers returns, because each allowable exemption reduces their taxable
More informationYear-End Tax Planning Summary December 2018
Year-End Tax Planning Summary December 2018 Overview Tax planning at year-end always presents opportunities, especially in a year that involves significant new tax legislation. This memorandum outlines
More informationRoth IRA Owner Resource Book
Roth IRA Owner Resource Book A benefit under the Issued February 2018 Defined Contribution Retirement Accounts of the Pension Fund of the Christian Church (Disciples of Christ) ("DCRA") TABLE OF CONTENTS
More informationA Primer on Portability
A Primer on Portability Presentation to: Estate Planning Council of New York City, Inc. Estate Planners Day 2013 May 8, 2013 Ivan Taback, Esq. Proskauer Rose LLP Eleven Times Square New York, New York
More informationRoth IRA Owner Resource Book
Roth IRA Owner Resource Book A benefit under the Issued May 2017 Defined Contribution Retirement Accounts of the Pension Fund of the Christian Church (Disciples of Christ) ("DCRA") TABLE OF CONTENTS INTRODUCTION...
More informationExtending Retirement Assets: A Stretch IRA Review
Extending Retirement Assets: A Stretch IRA Review Are you interested in the possibility of using the funds in your traditional IRA to provide income to one or more generations of family members? Table
More informationImportant Beneficiary Information
Important Beneficiary Information When you complete your Designation of Beneficiary Form ( Beneficiary Form ), you are naming a person or persons who will receive, upon your death, any remaining account
More informationNon-Citizen Spouse. Estate Planning Using Qualified Domestic Trusts (QDOTs) and Irrevocable Life Insurance Trusts (ILITs)
Guiding you through life. SALES STRATEGY NEEDS ANALYSIS Non-Citizen Spouse Estate Planning Using Qualified Domestic Trusts (QDOTs) and Irrevocable Life Insurance Trusts (ILITs) As large numbers of people
More informationRequired Minimum Distributions (RMDs)
Required Minimum Distributions (RMDs) March 21, 2012 Page 1 of 7, see disclaimer on final page What Are Required Minimum Distributions (RMDs)? Required minimum distributions, often referred to as RMDs
More informationEstate Planning. Insight on. Tax Relief act provides temporary certainty for your estate plan
Insight on Estate Planning February/March 2011 Tax Relief act provides temporary certainty for your estate plan 3 postmortem strategies that add flexibility to your estate plan Can a SCIN allow you to
More informationNO. JUDICIAL DISTRICT. In compliance with the requirements for qualified domestic relations orders, the following is specified:
NO. IN THE MATTER OF THE MARRIAGE OF IN THE DISTRICT COURT OF AND TEXAS COUNTY, AND IN THE INTEREST OF A CHILD JUDICIAL DISTRICT DOMESTIC RELATIONS ORDER This Order applies to the City of Austin-Employees'
More informationA Guide to Understanding Social Security Retirement Benefits
Private Wealth Management Products & Services A Guide to Understanding Social Security Retirement Benefits Social Security Eligibility Requirements Workers who pay Social Security taxes on their wages
More informationUnderstanding Social Security
Understanding Social Security Guide for Advisors A Look at the Big Picture For Financial Professional Use Only. Not for Use With Consumers. Is Your Clients Picture of Retirement Incomplete? Building retirement
More informationBasis Planning The Forgotten Part of Estate Planning Chattanooga Estate Planning Council October 2012
CAVEATS Basis Planning The Forgotten Part of Estate Planning Chattanooga Estate Planning Council October 2012 General Discussion Exceptions Apply Particular Facts can Change the Advice Every Possible Topic
More informationOptimizing Social Security Benefits. Thursday, February 18, 2016 Susan Amick McCants, CFP Edward W. Kramer, CFP
Optimizing Social Security Benefits Thursday, February 18, 2016 Susan Amick McCants, CFP Edward W. Kramer, CFP Goals Social Security overview Claiming decision tree Strategies to maximize payment options
More informationGeneration-Skipping Transfer Tax: Planning Considerations for 2018 and Beyond
Generation-Skipping Transfer Tax: Planning Considerations for 2018 and Beyond The Florida Bar Real Property Probate and Trust Law Section 2018 Wills, Trusts & Estates Certification and Practice Review
More informationH.R. 1 TAX CUT AND JOBS ACT. By: Michelle McCarthy, Esq. and Tyler Murray, Esq.
H.R. 1 TAX CUT AND JOBS ACT By: Michelle McCarthy, Esq. and Tyler Murray, Esq. Introduction History H.R. 1, known as the Tax Cuts and Jobs Act ( Act ), was introduced on November 2, 2017. It was passed
More informationConference Agreement Double Estate Tax Exemption No Change in Basis Step-up or down -83. Estate, Gift, and GST Tax. Chapter 12
Conference Agreement Double Estate Tax Exemption No Change in Basis Step-up or down -83 1 Estate, Gift, and GST Tax Chapter 12 Rev. Proc. 2017-58 (October 20, 2017) 12-2 Gift and Estate Tax Exclusions
More informationThe Own Your Own Policy Buy-Sell A New Strategy For Business Succession Planning
Own Your Own Policy Buy-Sell A New Strategy For Business Succession Planning 44 44 Spring Spring 2011 2011 Quarterly Quarterly Buy-Sell Agreements Are Critical. A buy-sell agreement is a written contract
More informationSummary Plan Description. for the. Vought Aircraft Industries, Inc. Hourly Retirement Plan. July 1, 2009
Summary Plan Description for the Vought Aircraft Industries, Inc. Hourly Retirement Plan July 1, 2009 eeak i Table of Contents Subject Page Introduction... 1 Participation Freeze...1 Benefit Freeze...1
More informationWorld Bank Staff Retirement Plan Payment of Spousal Support from Participant's Pension (for Participants Joining the Plan Before April 15, 1998)
World Bank Staff Retirement Plan Payment of Spousal Support from Participant's Pension (for Participants Joining the Plan Before April 15, 1998) The World Bank Staff Retirement Plan ("Plan") defines the
More informationCHAPTER 12 JOINTLY OWNED PROPERTY
CHAPTER 12 JOINTLY OWNED PROPERTY Types of jointly owned property (both real property and tangible/intangible personal property): 1) Tenancy in common (TIC) 2) Joint tenancy with the right of survivorship
More informationFOOD & BEVERAGE WORKERS UNION LOCAL 23 & EMPLOYERS PENSION FUND 7130 Columbia Gateway Drive, Suite A Columbia, MD (410)
FOOD & BEVERAGE WORKERS UNION LOCAL 23 & EMPLOYERS PENSION FUND 7130 Columbia Gateway Drive, Suite A Columbia, MD 21046 (410) 872-9500 PENSION APPLICATION INSTRUCTIONS: PLEASE READ ALL QUESTIONS CAREFULLY
More informationNEW JERSEY SOCIETY OF ENROLLED AGENTS
NEW JERSEY SOCIETY OF ENROLLED AGENTS January 8, 2014 RECENT TAX LEGISLATION INCLUDING THE AFFORDABLE CARE ACT Presented by: Brian D. Reynolds, Esq. MANTELL, PRINCE & REYNOLDS, P.C. Mountain Heights Center
More informationHoneywell Savings and Ownership Plan. Distribution Options Guide
Honeywell Savings and Ownership Plan Distribution Options Guide June 2016 For more information on the Plan, visit the HR Direct Website through the Honeywell Intranet or www.honeywell.com, click on 'Employee
More informationTHE DESIGN, FUNDING, ADMINISTRATION & REPAIR OF GRATS, QPRTS & SALES TO IDGTS
THE DESIGN, FUNDING, ADMINISTRATION & REPAIR OF GRATS, QPRTS & SALES TO IDGTS The Estate Planning Council of Greater Miami October 20, 2016 Louis Nostro, Esquire Nostro Jones, P.A. Miami, Florida lnostro@nostrojones.com
More informationGIT-1, Pensions and Annuities
GIT-1, Pensions and Annuities Introduction This bulletin explains how to report pension and annuity income on your New Jersey gross income tax return. It also describes the income exclusions which qualified
More informationUnderstanding Required Minimum Distributions for Individual Retirement Accounts
Understanding Required Minimum Distributions for Individual Retirement Accounts What are required minimum distributions (RMDs)? Required minimum distributions, often referred to as RMDs or minimum required
More informationRULE C8 Limitation where spouses or civil partners living apart
Rule C8 explains a limitation on death benefits if husband and wife, or civil partners were living apart at the date of death. Part V of Schedule 3 shows how a minimum level of pension should be calculated.
More informationManagement of the Corporation - Distribution of Cash, Property, or Stock
College of William & Mary Law School William & Mary Law School Scholarship Repository William & Mary Annual Tax Conference Conferences, Events, and Lectures 1972 Management of the Corporation - Distribution
More informationChapter 15 Taxation of S Corporations
Chapter 15 Taxation of S Corporations "Tax Option" corporations/subchapter S. Fundamental inquiry: Should the corporation (as an entity) be subject to any federal income tax? Alternatively, should the
More informationDivision Of Charitable Remainder Trust after Divorce: A Model Memorandum
Division Of Charitable Remainder Trust after Divorce: A Model Memorandum Lawrence P. Katzenstein This memorandum will summarize the issues and proposed strategy for the Benny Factor Charitable Remainder
More informationDeath: The Final Tax Frontier. Patrick Lee, CPA Senior Manager - Kruggel Lawton CPAs
Death: The Final Tax Frontier Patrick Lee, CPA Senior Manager - Kruggel Lawton CPAs CFO Summit November 8, 2017 2 The Unified Transfer Tax Unified Transfer Tax Includes estate and gift transfer taxes Both
More informationLearn about your Social Security benefits. Investor education
Learn about your Social Security benefits Investor education The role Social Security plays in your retirement Whether you re approaching retirement or you ve already retired, you and your financial advisor
More informationWhite Paper: Qualified Terminable Interest Property Trusts
White Paper: Qualified Terminable Interest Property Trusts www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA,
More informationRequired Minimum Distributions
Required Minimum Distributions Page 1 of 6, see disclaimer on final page Required Minimum Distributions What are required minimum distributions (RMDs)? Required minimum distributions, often referred to
More informationH. Compensation. Present Law
1. Nonqualified deferred compensation In general H. Compensation Present Law Compensation may be received currently or may be deferred to a later time. The tax treatment of deferred compensation depends
More informationA Guide to Understanding Social Security Retirement Benefits
Private Wealth Management Products & Services A Guide to Understanding Social Security Retirement Benefits Social Security Eligibility Requirements Workers who pay Social Security taxes on their wages
More informationA Surviving Spouse s Options with Respect to Their Deceased Spouse s IRA
Rev 7/11/2018 A Surviving Spouse s Options with Respect to Their Deceased Spouse s IRA We request you sign in by 8:20 and 12:20 as this allows an efficient start of the webinar The Webinar will be starting
More informationInternational Union of Operating Engineers Local 4 and Its Branches Pension Plan
International Union of Operating Engineers Local 4 and Its Branches Pension Plan Procedures and Policies for the Qualification and Interpretation of Domestic Relations Orders Adopted by the Board of Trustees
More informationInstructions for Form 709
Instructions for Form 709 (Revised November 1993) United States Gift (and Generation-Skipping Transfer) Tax Return (For gifts made after December 31, 1991) For Privacy Act Notice, see the Instructions
More informationQDRO ISSUES FROM PLAN SPONSOR S PERSPECTIVE
QDRO ISSUES FROM PLAN SPONSOR S PERSPECTIVE Stephen M. Goodson, Esq. Keating Muething & Klekamp PLL www.kmklaw.com Cincinnati, OH Nothing in this presentation is intended to be legal advice. Please consult
More informationSpouse and Child SBP Coverage
This fact sheet provides information to help you understand the provisions of the Survivor Benefit Plan (SBP), but is not a contract document. The basic statutory provisions of the SBP law are in Chapter
More informationSUMMARY PLAN DESCRIPTION
SUMMARY PLAN DESCRIPTION PENSION PLAN FOR HOSPITAL AND HEALTH CARE EMPLOYEES PHILADELPHIA AND VICINITY Sponsored by The Board of Trustees of The Pension Fund for Hospital and Health Care Employees Philadelphia
More information466 CHAPTER 9: IRAS AND SEPS
After reading this chapter, you should be able to: 1. Contrast the characteristics of IRAs with qualified plans. 2. Explain the impact of compounding on the ending value of an IRA account after years of
More informationDetermining Eligibility for Premium Tax Credits
Determining Eligibility for Premium Tax Credits November 20, 2013 Center on Budget and Policy Priorities Topics Understand the tax definitions of filing status and dependency and how they apply to common
More informationOmbudsman s Determination
Ombudsman s Determination Applicant Scheme Respondents Mrs Y Armed Forces Pension Scheme (the Scheme) Veterans UK Outcome 1. I do not uphold Mrs Y s complaint and no further action is required by Veterans
More informationStreet Address. City, State, ZIP
ROTH IRA CUSTODIAL APPLICATION PACKET (FORM ) Please Print or Type CUID (Credit union will complete.) - - IRA Owner s Social Security Number IRA Owner s Name (First, Initial, Last) Street Address IRA Owner
More informationNOVEMBER 2017 THE CURRENT SHAPE OF TAX REFORM
NOVEMBER 2017 THE CURRENT SHAPE OF TAX REFORM While much remains to be done, the President and the majority of Congress have articulated their plan for tax reform. The draft bill includes significant tax
More informationLife Events and Taxes
SHIRLEY W. HATCHER, CPA, PA... all things accounting and tax... Life Events and Taxes Life is full of milestones. It s those significant events that we all go through at some point in our lives, like getting
More informationWhat You Should Know: Required Minimum Distributions (RMDs)
Brian D. Goguen, P.C. Brian D. Goguen, CPA CFP 164 Concord Road Billerica, MA 01821 978-667-4595 bdgoguen@comcast.net www.bgoguen.com What You Should Know: Required Minimum Distributions (RMDs) Page 1
More informationREFERENCE GUIDE Spousal Trusts
REFERENCE GUIDE Spousal Trusts Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided
More informationGIFT TAX ANNUAL EXCLUSION. Presented for Valued Client
Presented for Valued Client Presented by John M. Webster HMS Insurance Associates, Inc. johnwebster@financialguide.com 443-632-3436 Page 1 of 8 The Concept Those who regularly use the gift tax annual exclusion
More informationSTRATEGIES FOR DIVORCED INDIVIDUALS
NAVIGATING YOUR SOCIAL SECURITY BENEFITS STRATEGIES FOR DIVORCED INDIVIDUALS When it comes to navigating Social Security benefits, it s all about timing. This guide will introduce you to a few of the strategies
More informationESTATE AND GIFT TAXATION
H Chapter Fourteen H ESTATE AND GIFT TAXATION INTRODUCTION AND STUDY OBJECTIVES Estate taxes are imposed on transfers of property by decedents, and gift taxes are imposed on the transfers by living individual
More information