Executive Summary Mother paid medical expenses directly to provider, and also paid daughter’s real estate taxes. IRS denied deduction to daughter since the daughter did not pay the expenses. Tax Court ruled that based upon substance over form, the mother had in fact made a gift to the daughter, and the daughter was the payor […]
Before they inherited $3 million in retirement accounts from their father last year, the three middle-aged siblings didn’t know it was possible for heirs to stretch out the tax benefits of such accounts for decades. But what they also discovered after his death is that doing this is tricky–and in some cases impossible–if the original […]
Executive Summary Surviving spouse (S) was not treated as the payee of the decedent’s (H) IRA, and thus could not take the IRA and roll it over into an IRA in her own name. Facts H died in 2004 at the age of 75, a resident of State W, survived by his spouse S, […]
EXECUTIVE SUMMARY A bankruptcy court in Florida has ruled that an individual’s IRAs are not exempt from the claims of creditors due to the individual’s transactions with the IRA. FACTS Ernest W. Willis filed for bankruptcy under Chapter 7 of the Bankruptcy Code on February 16, 2007. He claimed exemptions pursuant to11 U.S.C. Sec 522(b)(3)(C) […]
Iin a recent private letter ruling, that could best be described as not taxpayer friendly, the Internal Revenue Service has ruled that a transfer of assets from one IRA to another IRA, while the taxpayer is taking distributions that are part of a series of substantially equal periodic payments, is an improper modification. As a […]
THE economic maelstrom has brought with it tremendous opportunities for financial planning with retirement accounts. For this year only, people over 70 1/2 with traditional I.R.A.’s and those who inherited these accounts or Roth I.R.A.’s do not have to take the required minimum distributions. Congress suspended that requirement, along with those that apply to 401(k)’s, […]
Transitioning from single to married life can be a challenge, and the U.S. tax code doesn’t make it easier. Should you file jointly or separately? What if you change your name? And what’s this about a “marriage penalty”? Here are several things for newlyweds and engaged couples to keep in mind during tax season. File […]
Concerned about the economy and eager for help, taxpayers flooded the Daily News Tax Hotline Tuesday as the paper kicked off its annual free service. Phones rang nonstop, a Web chat attracted scores of questions and e-mails filled an inbox as a team from the New York State Society of Certified Public Accountants fielded questions […]