Taxes

IRS Denies IRC Section 1035 Tax Deferral in Annuity Exchange

6th Jul, 2016

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IRS Denies IRC Section 1035 Tax Deferral in Annuity Exchange

From: wealthmanagement.com

Taxpayer’s receipt of outright cash from original insurance company barred non-recognition

A taxpayer inherited an interest in an annuity from his late father. The taxpayer wished to exchange his interest in the inherited annuity for an annuity sold by a different insurance company. With the intent of qualifying the transaction as a permissible tax-free exchange, he mistakenly requested a “Lump Sum…

U.S. Tax Court Update

25th Mar, 2016

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U.S. Tax Court Update

From: quickreadbuzz.com

Part I of this article highlights notable 4th Quarter 2015 U.S. Tax Court Cases that will be of interest to valuation practitioners and business advisors. Estate of Purdue reminds us that taxpayers need to address 2036(a) concerns and establish a non-tax reason. In addition, the case reminds us that gifting an equity or LLC interest may not qualify as a present interest for gift tax purposes….