Is the Charitable Deduction for Trusts Limited to Adjusted Basis?

No, says a U.S District Court…

Recent News

05 Jul 2020

FBAR NON-WILLFUL PENALTY NOT CALCULATED BASED ON NUMBER OF ACCOUNTS

The FBAR rules require the filing of a FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR) to report for accounts of U.S. persons aggregating $10,000 or more. For a non-willful failure to disclose, the maximum penalty imposed is $10,000.

Since one FBAR is used to report multiple accounts, a basic question is whether the non-willful failure to report several accounts gives rise to only one $10,000 penalty (based on one return), or $10,000 multiplied by the number of unreported accounts. This can make a big difference . . .

30 Jun 2020

Applicable Federal Rates – July 2020

For the applicable federal rates for the above month, preceding months, and a data table that visually shows trends. . .

21 Jun 2020

Formula Clauses Bolstered by Case That Rules Against the Taxpayer

Formula clauses are used when property with uncertain value is transferred by gift or sale. The objective is to set the amount that is transferred for gift tax purposes, even if the IRS later is successful in asserting that what was transferred was worth more than what was reported. This can avoid gift tax by keeping the value below available exemption amounts.

The use of formula clauses received a boost in Wandry v. Commissioner, T.C. Memo. 2012-88. There, the Tax Court held that a clause which defined the amount being transferred as a portion of the property equal to a specific value as the value of the property is finally determined for gift tax purposes, would limit the transfer to such portion of the property, as finally valued for gift tax purposes after IRS review and court determination, as equal in value to the stated dollar amount.

In a recent Tax Court case. . .

17 Jun 2020

Lefkowitz v. Schwartz

By Jenna G. Rubin

This case revisits the applicability of the “trust exception” to creditors claims in a probate proceeding. Here, the creditor’s claim was based upon money lent by the creditor to the decedent, which the decedent promised to repay upon the sale of certain real property.

15 Jun 2020

Jenna Rubin Co-Authors Chapter in Practicing Under the Florida Probate Code

In June of 2020, the Florida Bar published the 10th Edition of Practicing Under the Florida Probate Code, which features an updated Chapter 4: Functions of Lawyers and Personal Representatives, co-authored by Jenna Rubin and Shane Kelley.

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