Income and estate tax implications vary for each estate depending on whether the decedent had a trust in place and, if so, the nature of the trust. Where the decedent transferred assets to a revocable living trust prior to death, one or more fiduciary income tax returns might be required to report income earned by assets in the estate and/or trust after death.
The Trump Administration released updated tax proposal terms in late April that closely match the proposals made prior to Election Day last year. If adopted, these tax reform provisions would offer substantial benefits to business owners and the wealthy.
Tennessee has a favorable tax reputation. While it is widely recognized that Tennessee does not impose income tax on wages, the state levies the Hall income tax on dividend and interest income. However, that tax is no longer permanent. Legislation enacted one year ago approved full repeal of the Hall income tax by January 1, 2022.
The Net Investment Income Tax may be repealed at the end of 2017. Two proposals released by the Joint Committee on Taxation in March 2017 advise removal of the 3.8 percent NIIT, which has been in effect since 2013.
While some tax scams have become routine each yearâ€”such as fraudulent calls from parties claiming to be the IRS, and ads for 'free money' from con artistsâ€”modern times provide more opportunities for scammers to swindle innocent people. Read on for W2 scams, email hacks, and tax preparer cyberattack information.
A bill introduced earlier this month in the House and Senate in Tennessee proposed to create an annual sales tax holiday for guns and ammunition. The proposed tax incentive in HB 744 (SB 1004) asks lawmakers to consider holding the three-day tax exemption the first weekend of every September.
The Death Tax Repeal Act of 2017 was introduced just a few days after the first of the year. In late January, another bill was introduced to the House. This bill includes provisions for permanently setting the lifetime gift tax exemption (with an inflation adjustment) and a maximum gift tax rate of 35 percent.
Virtually all estates and most trusts require filing of the Form 1041 to report income earned by the estate and/or trust. Our tax attorneys routinely assist trustees and executors with preparing the Form 1041. From these experiences we noticed that certain issues surfaced more frequently than others. Review these tips before filing.
Certain tax forms are required for estates and trusts that earn income. The executor or trustee is responsible for identifying necessary forms, completing proper accounting, and filing and paying any tax due by the deadline.