New regs ease disclaimer deadline - but not retroactively
Article Abstract:
Regulations issued by the IRS on Dec 31, 1997 provide that heirs must be given more time to disclaim joint interests with rights of survivorship or tenancies-by-the-entireties. Although the estate's claim in the Estate of Hennessy case was effective under the new regulations, the case was won by the IRS as such disclaimers are effective only when they were made after Dec 30, 1997. The case involves a decedent and his wife who owned properties based on the tenancies-by-the-entireties rule. After their deaths, the estate disclaimed the one-half interest passing by survivorship that would have otherwise been given to the decedent upon the death of his wife. In disclaiming an interest in the property, the estate argued that the transfer occurred on the predeceasing wife's death. The Tax Court agreed with the IRS that the transfer took place when the tenancies were created in 1972.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1998
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Final Regs. issued on capitalizing production interest
Article Abstract:
The IRS has released final Regulations covering the capitalization of interest borne during the production period of so-called 'designated property.' Such property encompasses all real and tangible property classified as such by a taxpayer provided any of three conditions are met: that the property possesses a class life of at least 20 years; that the property's production period exceeds a year and that production costs also exceed $1 million; or that the property's production period exceeds more than two years. Under the final Regulations, which apply for tax years after 1994, the capitalized interest borne during the production period needs to be computed by the avoided-cost method.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1995
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