Western CPE Blog
Breaking tax and accounting news and analysis from the experts at Western CPE.
20 Tips for Planning at The Eleventh Hour – Part 2 July 20, 2016
Reprinted with permission of Estates and TrustsMake Taxable Gifts The client may contemplate making taxable gifts in excess of their available federal gift tax exemption because the effective federal gift tax rate is less than the effective estate tax rate. While no gift tax is payable on funds used to pay gift tax, estate tax is payable on funds used to pay estate tax. This result occurs because the federal estate tax is tax “inclusive” and the federal gift tax is tax “exclusive.” Accordingly, even though gift and estate tax rates are the same (40 percent in 2016), the effective gift tax …
20 Tips for Planning at The 11th Hour – Part 1 July 15, 2016
Reprinted with permission of Estates and TrustPlan for IncapacityMany techniques we discuss require that the dying client him or herself, or someone authorized to act on their behalf, take actions. If not already completed, the client should execute a durable power of attorney (POA), which is effective on execution, authorizing an agent to make gifts and establish, amend or fund inter vivos trusts on behalf of the client during the client’s life. A springing POA, which is effective only on incapacity, presents challenges. Locating one or more physicians who will attest to the client’s incapacity may be difficult and time-consuming. As a result, a …
Extender Bill Passed By Congress December 18, 2014
By: Late as usual, Congress finally extended almost 60 expiring tax provisions to December 31, 2014.Sen. Ron Wyden, chairman of the Senate Finance Committee, who voted against the bill, criticized passage, saying that “with this stop-and-go tax extender bill, Congress is turning in its tax homework 11 months late and expecting to earn full credit.”Yes, Sen. Wyden, but with tax season looming, taxpayers, tax preparers, tax software programmers and the IRS are all breathing a sigh of relief now that we know what law will apply on the 2014 tax returns.A few of our clients might need an urgent phone call …