Author Archives: nikdouglas

New Rules for Inherited IRAS

NEW RULES FOR INHERITED IRAS   For those intending to leave and individual retirement account (IRA), there are new roles on how quickly you must withdraw the money. You do not want to make mistakes in withdrawals from an inherited IRS because the IRS can levy a 50% penalty on whatever amount it says you […]


Revenue Procedure 2020-45   The basic applicable exclusion amount (and generation-skipping tax exemption) will be $11.7 million, up from $11.580 million for decedents dying in calendar year 2021. The annual gift tax exclusion amount remains $15,000. The annual gift tax exclusion for a noncitizen spouse will be $159,000, up from $157,000. Other inflation adjustments in numerous tax rates are detailed in the attached copy of Revenue Procedure […]

Increase in 2020 Applicable Exclusion Amount

Download PDF   INCREASE IN 2020 APPLICABLE EXCLUSION AMOUNT – ESTATE TAX   The Internal Revenue Service (IRS) just announced that the estate and gift tax exemption for 2020 is increasing to $11.58 million per person — up from $11.40 million in 2019.   If you are like most people, you are probably asking, “What […]

2017 Tax Reform and Jobs Act

Download Full PDF ROADMAP TO 2017 TAX REFORM AND JOBS ACT December 29, 2017 effective for 2018 and thereafter. (Watch out for sunset provisions from 2025 to 2028.) This roadmap shows how the 2017 Tax Reform and Jobs Act (“An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution […]

2017 Estate and Gift Tax Limits

Download PDF IRS ANNOUNCES 2017 ESTATE AND GIFT TAX LIMITS: THE $11 MILLION TAX BREAK   For 2017, the estate and gift tax exemption is $5.49 million per individual, up from $5.45 million in 2016. That means an individual can leave $5.49 million to heirs and pay no federal estate or gift tax. A married […]

Treasury to Withdraw Valuation Rules

Download PDF   Treasury to Withdraw Valuation Rules.     In its final report on burdensome tax regulations, the Treasury Department has called for the withdrawal of Obama-era valuation rules that family business owners said would wreak havoc on their legacy plans. The proposed rules, issued in August 2016, “Restrictions on Liquidation of an Interest […]

Why it’s been 30 years since the last tax reform

Download PDF Why It’s Been 31 Years Since the Last Tax ReformSources: & Internal Revenue Service President Donald Trump has promised the most comprehensive overhaul of the tax system since 1986. That was when a Republican president joined forces with a Democratic House of Representatives and a Republican Senate to lower personal income-tax rates […]

What’s New in Estate and Gift Tax

Download PDF   WHAT’S NEW – ESTATE AND GIFT TAX   Consistent Basis Reporting Between Estate and Person Acquiring Property from Decedent On March 23, 2016, the IRS issued Notice 2016-27, which provides that statements required under section 6035, regarding the basis of property distributed from the estate of a decedent, need not be filed […]


  Download PDF     STATEMENTS TO IRS & BENEFICIARIES REGARDING BASIS REPORTING POSTPONED UNTIL JUNE 30, 2016   IRS has again delayed the initial due date for providing statements to IRS and to beneficiaries, under the rules requiring consistent basis reporting for estate tax and income tax purposes, this time until June 30, 2016. […]


Download PDF   INFLATION-ADJUSTED 2016 FIGURES FOR ESTATE AND TRUST TAX BRACKETS AND OTHER TRANSFER TAX ITEMS   A number of tax figures are adjusted each year for inflation based on the average Consumer Price Index (CPI) for the 12-month period ending the previous August 31. The August 2015 CPI has been released by the […]