On November 2 President Obama is expected to sign into law a completely new partnership and LLC audit law that will enable the IRS to collect tax due from partnership and LLC audits from closely held and family partnerships and LLCs unless the partnership or LLC elects not to have this law apply. If the partnership or LLC has a partner or member that is itself a partnership or LLC, it may not elect out. These rules will apply starting in 2018.
The election must be done each year with a timely filed income tax return and requires the partnership or LLC not only to notify the partners and members of its election but also to disclose to the IRS the name and taxpayer identification number of every one of its partners and members. It is important that this election be made every year by all family partnerships and LLCs.
0 Comments
As part of his 2014-2015 budget, Governor Cuomo has proposed significant changes to the New York estate and gift tax law. First, over four years, from April 2014 through December 2019, the New York estate tax exemption will increase from $1,000,000 to $5,250,000. After December 2019, the estate tax exemption will be indexed for inflation. Planning will still be important, because a surviving spouse will not be able to use a decedent’s unused New York exemption. This is the opposite of the federal rule, which does allow a surviving spouse to use a decedent’s unused federal estate tax exemption. Also, the New York exemption will always be less than the federal exemption. The top rate of estate tax will be reduced from 16% to 10%.
Now that the dust has settled and I have just returned from a week long national conference on the latest tax planning techniques, I thought it would be appropriate to circulate a brief summary of the “fiscal cliff saving” tax law recently signed by the President.
The American Taxpayer Relief Act of 2012 allows tax rates to rise on the nation's highest earners while also extending dozens of tax cuts for individuals and businesses. It also permanently extended the $5,000,000 (adjusted for inflation) federal estate tax exclusion that applied to deaths in 2011 and 2012. Specifically, the bill: |
AuthorMr. Hendel has been practicing wealth preservation planning for over forty years. Archives
September 2022
Categories
All
|