Author: Pete Finch
When the new tax law disallowed miscellaneous 2% deductions and personal exemptions, it was unclear how this would affect Estates and Non-Grantor Trusts. On 7/13/2018, the IRS issued Notice 2018-61 that announced the Treasury Department and IRS intend to issue regulations providing clarification. In general, some deductions and the personal...
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FEDERAL: Under the Tax Cuts and Jobs Act of 2017 that was signed into law by President Donald Trump on 12/22/2017, the basic exclusion amount for gifts made and estates of decedents passing away after December 31, 2017 and before January 1, 2026 has doubled from an inflation-adjusted $5 million...
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As part of the Omnibus Tax Bill passed by the Minnesota State Legislature during the 2017 Special Session and signed into law by Governor Dayton, the Minnesota Estate Tax Exclusions have been retroactively increased for Estates of Decedents dying after December 31, 2016 to the following: $2,100,000 (for decedents passing...
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The IRS has recently released Revenue Procedure 2017-34 (effective 6/9/2017) to provide a permanent simplified method for estates to make an election to pass the Deceased Spouse’s Unused Exemption (DSUE) to the surviving spouse (aka the estate tax portability election). BACKGROUND IRC Section 2010(c)(5)(A) provides that for a DSUE election...
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Many people believe that the Estate Tax only affects the very wealthy. With a 2016 Federal Estate Tax Exemption of $5,450,000 (increasing to $5,490,000 for 2017) and the opportunity to carryover any unused exemption to a surviving spouse (under a DSUE election) allowing a married couple to shelter up to...
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