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.
Executors are not legally required to retain a lawyer for estate administration. Many state-provided resources are available to executors. However, when an executor chooses to manage the probate process independently, they increase their chance of errors.
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The Net Investment Income Tax may be repealed at the end of 2017.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.
The IRS recently issued Notice 2017-12 describing new procedures for closing federal estate tax returns. Estate tax closing letters are not recognized as a formal closing agreement. Taxpayers must request a transcript.
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.
Senate Bill 446 was introduced to the Senate in late February. The bill, the Constitutional Concealed Carry Reciprocity Act of 2017, would implement concealed carry reciprocity nationally for certain firearms.
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 United States Tax Court filed a memorandum shortly after the New Year pertaining to an estate tax case. The case highlights three important tax matters that executors might misinterpret or otherwise overlook during estate administration.