Estate tax Archives | SF Tax Counsel

21Jan 2021 by Pat Geddie

With Mega Million, Power Jackpots Swelling to $1.6B Combined, the Valuation of Large Lottery Payouts Remains an Open Question for Purposes of the Estate Tax

By Anthony Diosdi Thousands of people play various lotteries every day; few actually win. However, for those who do, such winnings may present a good news/bad news situation. The good news being the newfound wealth. The bad news, however, is that notwithstanding the fact that one study has found that nearly one-third of lottery winners become bankrupt, if the lucky winner dies before he or she receives his or her entire payout, the “lucky” winner’s estate may now have some vexing tax problems. Not only will the estate have to pay the federal estate tax based upon the fair market value of the right to receive the stream of lottery payments (which will require cash that the estate may not have available), but the issue to value the lottery prize…

27Jan 2020 by Pat Geddie

Are Families Who Took Advantage of the Temporary Increase in the Unified Credit for Estate and Gift Taxation Purposes in for a Very Unpleasant Surprise after 2025?

Gift Tax

By Anthony Diosdi Estate and Gift Tax 101On December 31, 2012, President Obama signed the Economic Growth and Tax Relief Reconciliation Act exempting $5,120,000 (indexed for inflation) from estate and gift taxes, and the generation-skipping transfer taxes (“GST”). The Tax Cut and Jobs Act of 2017, the current law signed by President Trump on December 22, 2017, essentially doubled the transfer tax exemptions from $5 million to $10 million, indexed for inflation. The Tax Cuts and Jobs Act of 2017 currently excludes $11.4 million of assets from estate and gift taxes of a U.S. citizen or resident. However, many of the provisions of the Tax Cut and Jobs Act of 2017 are scheduled to expire on December 31, 2025. This means that on January 1, 2026, the estate and gift…

30Dec 2019 by Pat Geddie

New York Estate of Mind

Tax Law

By James Huang Ranked among the highest taxing jurisdictions in the country, New York is one of the few states that also has a state-level estate tax. Ranging from 3.06% to a top rate of 16%, New York's estate tax is imposed on decedents domiciled in New York. This tax is also imposed on those who are not New York domiciliaries, but who own real or tangible personal property located in the state. Described below are some of the key features of New York's estate tax and how these features interact with the federal regime. Exclusion Gap Like the federal estate tax, New York's estate tax allows estates a "basic exclusion amount" (BEA) — i.e., an amount up to which a decedent's estate is not subject to estate tax. Historically,…

16Aug 2019 by Pat Geddie

Part Time Lovers- International Tax Attorneys and the Estate and Gift Tax

Tax Law

By Anthony Diosdi International taxation from the U.S. federal tax perspective is traditionally divided into two primary topics, inbound foreign investment by nonresident aliens and foreign entities, and outbound investment by U.S. persons and corporations. In the individual foreign investor setting, inbound planning often requires a balancing of U.S. income tax considerations on one hand and U.S. federal estate and gift tax considerations on the other. As a result, for many foreign direct investors, the most important tax consideration is the U.S. federal estate tax and gift taxation. The federal estate and gift tax ranges from 18 percent to 40 percent of a U.S. estate. See IRC Section 2001(c). A non-U.S. resident’s gross estate is composed of U.S. situs property at either the time of the transfer or the time…