Sales tax rates by state
At death, the "excess accumulation" in an IRA or qualified plan was also subject to a 15% excise tax (in addition to the income tax, estate tax and any generation-skipping tax then due). sales tax rates by state 1099 tax form. The excess accumulation was calculated by taking the balance of the plan at death and reducing it by the present value of a benefit which would not be subject to the 15% tax on excess distributions. In 1996, some relief was provided from the tax on excess distributions by a law that repealed it for a three-year window period (1997-99). The Act, however, repeals both the 15% excess distributions tax and the 15% excess accumulations tax in their entirety. sales tax rates by state Tax filing. CommentIndividuals making large withdrawals from their qualified plans and/or IRAs to take advantage of the three-year window period need not do so anymore. They may revert to a smaller or even minimum distribution amount without concern for the 15% excise tax at death. Husbands and wives who have named each other as beneficiaries of their qualified plans or IRAs solely to obtain deferral of the 15% excise tax on the first death may want to rethink the implications (tax and otherwise) of their beneficiary designations. sales tax rates by state Federal tax return. CHARITABLE REMAINDER TRUSTS RESTRICTEDTwo new requirements have been added to the Internal Revenue Code to stop perceived abuses of charitable remainder trusts. First, the annual payout percentage may no longer exceed 50%. (In the view of the IRS, certain high-payout charitable trusts have been established in the past where the grantor had no charitable intent and was solely motivated by the trust''s special tax treatment allowing for the avoidance or deferral of taxes on capital gains. ) Second, the charity''s remainder interest in the trust must now be at least 10% of the initial fair market value of the assets transferred to the trust. As to any subsequent contributions to the trust, the value of the remainder interest in the contributed property must be equal to at least 10% of the fair market value of the property when contributed. CommentThese restrictions became effective this past summer for trusts created during the donor''s lifetime. If you established a charitable remainder trust recently, you may want your attorney to rerun the calculations to make sure your trust qualifies under the new law. If it does not, the Act allows you to amend the trust or have it declared null and void and unwound. As to charitable remainder trusts to be established upon the death of the donor (testamentary charitable remainder trusts), there are short-term and narrow transition rules. We recommend that all GCWF clients with testamentary charitable remainder trusts contact their attorneys at their earliest convenience (see box below) so that changes, if any, may be made to these trusts to ensure compliance with the new restrictions. 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. 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. CommentThis restoration of the fair market value deduction may also affect contributions to charitable remainder trusts.
Sales tax rates by state
Federal || Irs publications forms || Sales tax rates by state || 1099 tax form