Posted on

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. read more

Posted on

Proposed Regulations Limiting Discounts on Family Gifts Targeted for Reform

By:  Amanda Wilson

Last summer, we discussed the IRS’s issuance of new 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.)   Earlier this year, the Trump Administration issued an executive order instructing the Treasury Department to review all significant tax regulations issued after December 31, 2015 and identify any regulations that impose an undue burden on taxpayers.  The Treasury Department and IRS have completed this review, and have identified eight burdensome regulations that should be reformed.  The good news for taxpayers is that the Proposed Regulations under Section 2704 are on this list. read more

Posted on

Plan Ahead to Avoid or Minimize US Estate Tax

By: Jason Palmisano If you are not a US resident or a US citizen and are considering buying assets in the US, there are ways to avoid or minimize US estate tax on those assets. Here are some things to consider:

  • The US federal estate tax applies to US citizens, individuals considered to be US “residents” subject to US estate tax, and possibly to individuals who are not a US citizen or a US resident.
  • An individual will be considered a US resident subject to US estate tax if the individual is considered domiciled in the US at the time of death, which will be determined based on whether the individual has or had a physical presence in the US and the individual’s intent to remain in the US.
  • Please note, the US income tax rules for determining residency are different from the US estate tax rules for determining residency.
  • If an individual is not a US citizen or deemed to be a US resident for US estate tax purposes, then that individual may still be subject to US estate tax if the individual owns assets that are determined to be situated in the US at the time of the individuals death.
  • Such assets include US real estate, stocks in US corporations, and tangible personal property.

For tips on how to avoid or minimize US estate tax, click on the video below:

Jason PJason Palmisano offers advice about estate planning for non-U.S. citizens

If you have any questions about US estate tax, please contact Jason Palmisano, Julie Frey  or any member of the Estate Planning Group.