Estate tax

(1) Grantor creates a trust with income to Spouse for life, remainder to Child if living and, if not, reversion to Grantor or Grantor’s estate. (a) If Grantor predeceases Spouse and Child, is Section 2037 applicable to the transfer? No. Section 2037 is not applicable to the transfer. Based on Section 2037, “ The value of the gross estate shall include the value of all property to the extent of any interest therein of which the decedent has at any time after September7, 1916, made a

Estate Tax Planning Current law for estate tax, gift tax, and generation skipping transfer tax is a 35% rate with an exclusion of $5.12 million. This is scheduled to change on January 1, 2013 to a 55% tax rate with an exclusion of $1 million. Due to the scheduled change, it would be advisable to be very aggressive in tax maximization before December 31, 2012. Pending congressional action, there is a proposal to for a 45% tax rate with an exclusion of $3.5 million for estate and generation

Corporate Tax, Cost of Debt, Cost of Equity and Capital Structure: A case study of REITs and conventional real estate firms in the UK University of Groningen Faculty of Economics and Business BSc International Business January 2013 Table of contents 1. Introduction 4 2. REITs 7 3. Literature Review 9 3.1 Capital Structure Irrelevance 9 3.2 Present Models 10 4. Data and Methodology 12 4.1 Regression 12 5. Findings and Discussion 16 6. Conclusion 20 7. Appendix

the requirements for estimated tax payments by self-employed individuals? Individuals who work for themselves and make money to do so constitute as self-employment income. Independent contractors and sole proprietors are considered self-employed. They receive all payment without withholding any Social Security tax, Medicare tax, state tax, and etc. They do however have self-employment tax, which is taken out when the individual file Schedule C or C-EZ on their tax return. They would also need to

When closing an estate, most states that use a formal probate process, allow for an informal closing for common estates. These states simplified the probate process for estates that are straightforward; not complicated or contested. Fortunately, Massachusetts is one of those states. In Massachusetts, closing an estate using the simplified probate process involves the following tasks: 1) Complete a final inventory of assets. 2) Using the inventory of assets in the final accounting, complete the

which allows the property to qualify for the marital deduction if the trust meets certain requirements. I.R.C. § 2056(d)(2)(A). For a trust to qualify for QDOT status and the marital deduction, it must meet the seven requirements contained in the tax code and accompanying treasury regulations. I will separately discuss each requirement below and whether the currently language of Form M effectively fulfills that requirement. B. Designation of U.S State for Administration and Record Keeping The

When redeeming savings bonds that are property of the estate, reporting rules from the IRS can make the transaction complex. As depicted in the article Redeeming Series E Savings Bonds of the Decedent, redeeming savings bonds is not a difficult process. However, reporting the interest income earned on the savings bonds is where the complexities exist. As a result, implications may result for the estate if the executor is not aware of the rules the IRS set forth for reporting interest income on the

Skipping Transfer Tax INTRODUCTION AND ISSUE The United States generation skipping transfer tax imposes a tax on gifts and transfers to people more than one generation younger than the donor. An example is a grandparent giving a gift to a grandchild, in turn skipping their own child. Grandparents would give a gift to their grandchildren to avoid or defer federal gift taxes, but this is now subject to a generation skipping tax. Congress passed the original generation-skipping transfer tax in 1976 to go

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Statutory deferral when real property is transferred to a corporation with FMV higher than the tax basis. The law provides three exceptions where the transfer of Real property to a corporation with market value higher than the basis is not taxable; 1. The transferor owns more than 80% of voting stock of the corporation immediately after the transfer 2. The transferor and a group, simultaneously transfer real property to a corporation and own more than 80% of the corporate voting stock immediately