When to take advantage of the three year waiver of the 15 percent excise tax

Article Abstract:

The three-year moratorium on the 15% excess distribution excise tax for Jan 1997 through Dec 1999 may provide planning opportunities, but some taxpayers may be better off keeping funds in their retirement plans. A Small Business Job Protection Act provision allows taxpayers to receive unlimited plan distributions, which may also help reduce the risk of being subject to the 15% excess accumulations estate tax. However, taxpayers must pay income tax on all distributions not donated to charity, and funds distributed are no longer earning income that may help pay for increased taxes.

Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds, Planning, Distribution, Qualified benefit plans, Estate tax, Estate taxes, Tax penalties

---

Estate and income tax implications of IRD

Article Abstract:

Congress created income in respect of a decedent in 1934 to equalize year of death taxation between cash and accrual basis taxpayers. This income includes anything received after the taxpayer's death and therefore can substantially affect the taxation of the decedent's estate or successors. Though significant planning is not possible because no one knows the time of death, decision-making can be given to the executor who could decide at the time whether to distribute the income to a beneficiary or allow the estate to be taxed.

Analysis, Estate planning, Decedents' estates

---

Deducting deficiency interest as a business expense: recent developments since TRA '86

Article Abstract:

Sole proprietors can treat tax deficiency interest payments as deductible business expenses under Temp Reg 1.163-9T(b)(2)(i)(A). Such a deduction for personal interest was outlawed by the 1986 Tax Reform Act, but the effect of this law on unicorporated businesses was not explicitly stated. The courts, in cases such as Redlark and Miller, have made clear that in certain situations sole proprietors can legally claim this deduction.

Interest deductions, Expense deductions, One-person corporations, One person corporations

Similar abstracts:

• Abstracts: More to it than meets the eye. Super value Supercalc. Putting the IT into auditing
• Abstracts: Checking out the rescuers. Making the right contacts. The two-way traffic in motor rip-offs
• Abstracts: Living in the shadow of Goliath. But is it art? A welcome on the hillside
• Abstracts: An investigation of the accuracy of pre-implementation estimates required by SAB 74. SEC communications to the independent auditors: an analysis of enforcement actions
• Abstracts: The role of earnings levels in annual earnings-returns studies. The boundaries of financial reporting and how to extend them

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.