Planning for estate tax deductions for selling expenses depends on where estate is located
Article Abstract:
The Internal Revenue Code allows deductions for administration expenses from a gross estate. Deductible administrative expenses must be actually and necessarily incurred in administering the estate. Selling expenses are deductible if the sale of assets is necessary to pay off debtors, taxes, administration expenses, or to effect a distribution. Allowances for deductions for administrative selling expenses depends on the tax court's interpretation of regulations within the taxpayer's jurisdiction. Tax court's interpretations vary widely among jurisdictions, and the US Supreme Court has refused to hear a case which would have set precedent. The states of IL, PA, and TX are more likely to allow deductions and taxpayers' chances for an allowable deduction are much better in the Sixth Circuit.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1989
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Which form of ownership of family real estate will best meet income and estate tax goals?
Article Abstract:
Estate planning strategies related to family real estate ownership are discussed. Shifting ownership of real property to a subsequent generation family member can save on estate taxes and offer liability protection. The best time for a family member to acquire an interest in real property is at the time of the initial acquisition of the property; this method involves the least amount of expense, risk, and complexity. A popular estate planning tool to reduce the effect of property appreciation is the estate freeze, although the use of estate freezes has been restricted by the Revenue Act of 1987. The tax implications of alternative forms of ownership are discussed.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
User Contributions:
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