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Three Documents You Must Have to Protect Your Family During the COVID-19 Crisis and Beyond

By: Melody B. Lynch & Brian Lawrence

Naturally, COVID-19 has led to a large degree of uncertainty, which emphasizes the importance of having your estate plan in place – or establishing one if you have not done so already. While it is impossible to prepare for every possible contingency, there are ways to give yourself some peace of mind.

Here are three essential legal documents to execute during this crisis to help protect you and your family going forward: read more

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Republicans Announce Tax Reform Framework, Which Includes Repealing Estate Tax

By:  Amanda Wilson

After months of speculation, President Trump and the Republicans have announced their framework for tax reform.  While specific details are not known, the key elements of the framework include:

  • Reducing the corporate tax rate to 20% (current rate is 35%).
  • Providing for a 25% tax rate (current maximum rate for individuals is 39.6%) for income from small businesses owned as sole proprietorships, partnerships and S corporations.
  • Providing for individual tax bracket rates of 12%, 25%, and 35% (a change from the current 7 rates that go from 10% to 39.6%).
  • Repealing the estate tax and the generation skipping tax.
  • Repealing the individual alternative minimum tax.
  • Doubling the standard tax deduction to $12,000 for individuals and $24,000 for married couples.
  • Increasing the child tax credit.
  • Eliminating most itemized deductions for individuals (including deductions for state and local taxes).  There will still be tax incentives for mortgage interest and charitable contributions.
  • Limiting corporations ability to deduct interest.
  • Allowing corporations to expense the cost of new investments in depreciable assets other than structures for at least 5 years.
  • Repealing Section 199 deduction for domestic production.
  • Replacing the current tax system for U.S. companies operating abroad.  U.S. companies will receive a 100% exemption on dividends from related foreign subsidiaries.  Any existing accumulated foreign earnings will be treated as repatriated, with the corresponding tax spread out over several years.  Earnings held in illiquid assets will be subject to a lower tax rate than earnings held in cash or cash equivalents.

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    Treasury Plans to Pull Unpopular Discount Regulation

    By:  Amanda Wilson

    As discussed earlier this summer, Treasury and the IRS identified as a burdensome regulation the Proposed Regulations under Section 2704 of the Internal Revenue Code, which regulations would severely impact discounts on gifts made to family members.  (Our prior discussion can be found here.)   Today, Treasury issued a report announcing that it proposes revoking the proposed regulations.  This is good news for taxpayers.