Category Archives: Estate Planning Blog
Bill Introduced to End the Nebraska Inheritance Tax
A bill was introduced in the Nebraska Unicameral that would end the Nebraska inheritance tax. The tax is paid to counties by people who inherit property from deceased friends and relatives. Nebraska is currently one of only eight states to have such a tax. The proposal comes amid Forbes Magazine naming Nebraska as one of… Read More »
Estate Planning under 2010 Tax Relief Act
Estate Planning Under the Tax Relief Act of 2010 In the final hours of 2010, Congress passed the Tax Relief Act of 2010. As part of that act, the estate tax continues for two more years with an exemption level of $5 million and a maximum tax rate of 35%. The key issue… Read More »
Treatment of Goodwill Upon the Sale of a Business: Asset of the Owner v. Asset of the Company
In 1980, Larry E. Howard, D.D.S. incorporated his dental practice and entered into an employment agreement and covenant not to compete with the corporation. In 2002, Dr. Howard retired and negotiated the sale of his practice to a corporate buyer for approximately $613,000, most of which was allocated to intangible assets. Dr. Howard reported over… Read More »
HIRE Act Introduces New Tax Incentives for Employers For Hiring Employees
The Hiring Incentives to Restore Employment (“HIRE”) Act, signed into law March 18, 2010, includes several important tax provisions designed to promote job growth and stimulate the United States economy. Hire Now Tax Cut $13 billion in tax breaks are available to qualified employers both in the form of payroll forgiveness for Social Security taxes… Read More »
TAX COURT RULES GIFTS OF NEBRASKA LLP NOT A GIFT OF A PRESENT INTEREST
The United States Tax Court recently published a tax court memorandum opinion, T.C. Memo 2010-2 entitled Walter Price v. Commissioner. In Price the Tax Court held that a couple’s gifts of interest in a Nebraska limited partnership to their children did not qualify for the gift tax present interest annual exclusion under I.R.C. § 2503(b), determining… Read More »
IRS Issues Guidance on Correction of Certain Failures under Code Section 409A (Notice 2010-6)
The IRS has issued guidance for taxpayers with nonqualified deferred compensation plans on correcting certain failures to comply with the document requirements of IRC Section 409A. Taxpayers may rely on this guidance for tax years beginning on or after January 1, 2009. Unless specific requirements are met, amounts deferred under a nonqualified deferred compensation plan… Read More »
Power Point-Skills for The Estate Planning Process
To view our Power Point Presentation on Skills for the Estate Planning Process, please follow the attached link: http://www.pvwlaw.com/CM/Articles/Power%20Point-Skills%20for%20The%20Estate%20Planning%20Process%20(00058118).PPT © 2009 Parsonage Vandenack Williams LLC For more information, contact info@pvwlaw.com
CURRENT RULES GOVERNING POWERS OF APPOINTMENT
Under IRC § 2041(b), the term “general power of appointment” means a power which is exercisable in favor of the decedent, his estate, his creditors, or the creditors of his estate; except that– a power to consume, invade, or appropriate property for the benefit of the decedent which is limited by an ascertainable standard relating… Read More »
Minimum Required Distributions Not “Required” for 2009.
On December 23, 2008 the “Worker, Retiree, and Employer Recovery Act of 2008″ was signed into law by President Bush. One key provision of the Act temporarily suspends the requirement for taxpayers age 70 ½ and older (and their beneficiaries) to make annual minimum required distributions (MRDs) from their retirement plan accounts. The Internal Revenue… Read More »
