Nys tax forms
In all respects, the Act significantly limits planning opportunities with charitable remainder trusts for the benefit of donors in their 30''s and 40''s as well as charitable remainder trusts with younger children or grandchildren as successive beneficiaries. nys tax forms Bush tax cuts. FAVORED DEDUCTION FOR PUBLICLY-HELD STOCKGIVEN TO A PRIVATE FOUNDATION EXTENDEDA donor can deduct only the basis in appreciated property contributed to a private foundation. Since 1969, however, with only a brief exception, a full fair market value deduction has been allowed for most contributions to a private foundation of appreciated publicly-held stock that had been held sufficiently long to acquire the status of a long-term capital asset. This rule expired on June 1, 1997, but the Act reinstated this fair market value deduction with respect to contributions made through June 30, 1998. nys tax forms Inheritance tax laws. CommentThis restoration of the fair market value deduction may also affect contributions to charitable remainder trusts. The basis limitation on the deduction for contributions of appreciated assets applies to gifts to charitable remainder trusts if a private foundation is the remainder beneficiary or if the grantor can change the remainder beneficiary to such a foundation. NEW CAPITAL GAINS RATES AND CAPITAL GAINS EXCLUSION FOR SALE OF A RESIDENCE HAVE ESTATE PLANNING IMPLICATIONSThe Act contains new capital gains rates and a capital gains exclusion on the sale of a residence, both of which have estate planning consequences. nys tax forms Estate taxes. To summarize, the new capital gains rates are as follows: 20% rate for property held over 18 months (10% maximum rate for taxpayers in the 15% bracket) 18% rate for property held for five years if acquired after year 2000 (holding period must be five years from then, so first eligibility is after 2005) - special mark-to-market rules for property acquired before 2000 (elective) 28% rate for property held one year to 18 months, and for collectibles 25% rate on real estate depreciation recapture Ordinary income rate for property held less than one year. The above rates are effective for sales after July 28, 1997 (with a special rule for sales after May 6, 1997 but before July 29, 1997). The new $250,000 ($500,000 if married and filing jointly) capital gains exclusion on a sale of a residence applies to all taxpayers if certain use and ownership requirements are met. This new law replaces two provisions in prior law concerning the taxpayer''s residence, the tax-free rollover rule and the one-time $125,000 exclusion from gain for taxpayers 55 years of age and above. CommentThe new capital gains rates may reduce the use of charitable remainder trusts to avoid capital gains. The new rule may encourage taxpayers to make lifetime gifts of appreciated property (where the donee gets the donor''s basis) rather than waiting until death to make the transfer (when the beneficiary receives a basis adjusted to the property''s fair market value at death). CONCLUSIONAs can be seen, the Act includes provisions which both giveth and taketh away. Unfortunately, it also creates unnecessary complexity. Yet, the end result is a definite increase in transfer tax savings opportunities. As a consequence, taxpayers have more planning opportunities to reduce estate, gift and generation-skipping tax. The Quarterly is produced and copyrighted by Gray Cary Ware & Freidenrich, LLP. Any use or reproduction of the contents of the Quarterly without the prior written consent of Gray Cary Ware & Freidenrich is strictly prohibited. The Gray Cary Ware & Freidenrich Quarterly is published as a service to our clients and friends. In no case does the published material constitute an exhaustive legal study or legal advice.
Nys tax forms
Refunds || California state income tax || Illinois state tax forms || Free income tax filing