Estate planning, gift tax rules, and everything that happens when wealth passes from one generation (or person) to the next.
Taxpayer asks: This year, I will have been married for 25 years. To celebrate, I bought my wife a very nice piece of jewelry; I have never purchased anything this expensive for my wife before (if you do not count our house and cars). My friend has advised that I will need to pay gift…
There’s Trouble in New York. And he’s rich. Trouble, the beloved Maltese belonging to Leona Helmsley, is the beneficiary of a $12 million trust fund, according to her will, which was made public Tuesday in surrogate court. Helmsley’s brother, Alvin Rosenthal, was named Trouble’s caretaker. Helmsley’s only child, Jay Panzirer, died at the age of…
Taxpayer asks: My son’s grandmother has offered to pay his tuition for graduate school this year. Can she get a tax deduction for this? Does my school have to report this as income? Taxgirl asks: First of all, as someone with a slew of student loans for graduate school, tell your son that he’s very…
But not many… in the Ways and Means Committee. The Business Journal of Phoenix (how’s that for a source?) is reporting that U.S. Rep. Harry Mitchell, a Democrat of Arizona, is introducing a bill to keep federal capital-gains taxes permanently at 15 percent and to make recent cuts to federal estate taxes permanent. The Democratic…
Taxpayer asks: My mom gave me money through my paypal account. There were 3 separate transactions totaling $380 but was non-business related, do I need to claim these transactions along with the other income from my business since they used my PayPal account?Taxgirl says: Absolutely not! Though I will take this opportunity to discourage you…
When Congress first introduced the wacky legislation that created the current federal estate tax situation (an exemption that gradually rises to $3.5 million per person, is eliminated in 2010, and returns in 2011 to its “old self”), most folks assumed we had plenty of time to fix it. 2010 seemed years away. Now, 2010 is…
The most recent news out of the Anna Nicole Smith camp is that her Will does not provide for anyone other than her now deceased son, Daniel. In fact, it specifically excludes afterborn children and future spouses. Of course, the wrench in all of this is that Daniel predeceased Anna Nicole, thus likely creating an…
Just hours after the news of Anna Nicole Smith’s suspicious death broke, there were already questions about the status of her deceased husband’s estate. The main query was whether the case could proceed. The short answer is yes, that absolutely it can proceed. In fact, the executor of her estate (who many people assume will…
Dates matter. Well, they do in Pennsylvania. The latest flap over James Brown’s estate has taken yet another turn that apparently hinges on the interpretation of state law. James Brown’s attorney, Strom Thurmond, Jr., has acknowledged that James Brown’s will was signed in the year 2000 – before James’ child, James Jr., was born. The will was also…
As Congress continues to ponder whether the federal estate tax makes any sense, the Citizens for Tax Justice weighs in with some IRS statistics. Consider this: In 2004, there were 2,429,024 Americans who died. Only 18,431 of those Americans were required to pay federal estate tax in 2005. If you’re keeping score, that’s .8% –…