2019 ABA Heckerling Reports from 53rd Annual Heckerling Institute

For the past 22 years, the American Bar Association Section of Real Property, Trust and Estate Law with the permission of the University of Miami School of Law, releases several extensive reports highlighting the various lectures and proceedings of the Heckerling Institute, one of the nation’s largest estate planning conferences, held every year in January. This week in Orlando, Florida, the 53rd Annual Heckerling Institute on Estate Planning took place.  To view, download and access these extensive reports (which are still being updated and added), see below. Further, at the above website, you can also access reports from prior Heckerling…

Grantor Retained Annuity Trusts for the Large Estate

By Steven J. Oshins, Esq., AEP (Distinguished) The federal estate and gift tax exemption is at an all-time high, thereby leaving only a tiny percentage of people who have taxable estates.  This shift in demand for advanced estate tax planning has similarly reduced the number of estate planners who handle advanced estate tax planning, an expected result of supply and demand.  Even if an estate planner doesn’t personally practice in the high-net-worth area, the planner absolutely must be aware of certain estate tax-saving techniques such as the Grantor Retained Annuity Trust (“GRAT”). A GRAT is an irrevocable trust into which…

CHECKLIST: 2017 Tax Act & Recent Developments

By Martin M. Shenkman, CPA, MBA, PFS, AEP (Distinguished), J.D. Summary: The 2017 Tax Cut and Jobs Act has changed almost every aspect of planning.  Consider the following. √ Sec. 199A: The 20% QBI deduction applies for 2018 – 2025. Consider the sunset of this tax bennie when evaluating the cost of planning to enhance whatever benefits you can get. Example: Before restructuring a business, will the payback over the years remaining be worth the cost? √ Charity: The new doubled standard deduction may eliminate any tax benefit from donations. Consider setting up a non-grantor trust to salvage that deduction. Example: You create an irrevocable…

Section 199A: Triple Net Leases Considered a Trade or Business?

By Alan S. Gassman J.D., LL.M. (Taxation), Florida State Bar Certified Specialist in Wills, Trusts & Estates, AEP (Distinguished) and Kelsey Weiss Introduction The 2017 Tax Cuts and Jobs Act introduced the new, and sometimes problematic, Section 199A to the Internal Revenue Code. Section 199A was designed to provide taxpayers with a 20% deduction for qualified business income earned through qualifying trades or business. This deduction for business owners was added, most likely, in response to the significant tax cut the Act created for large corporations.1 Unfortunately, there is no single accepted definition of “trade or business,” so many taxpayers are in…

199A – The Real Regulatory Story: Revelations From The Proposed Regulations

By Alan S. Gassman J.D., LL.M. (Taxation), Florida State Bar Certified Specialist in Wills, Trusts & Estates, AEP (Distinguished) As most estate planners know, the new Section 199A proposed regulations were released earlier in August to great fanfare and curiosity.  My team and I have spent considerable time, already, poring through the language and changes. We were given the opportunity to share our thoughts and summary of these regulations in an article featured on Forbes.com.  To read this article, click here. SECTION 199A RESOURCES Here are some other Section 199A resources that may be of interest to you: PROGRAM REPLAY: “Section 199A…

IRS Notice 2018-54 Warns Taxpayers to Avoid State Work-Arounds $10,000 SALT Deduction Cap

By Steven J. Oshins, Esq., AEP (Distinguished) The $10,000 SALT Deduction Section 11042 of The Tax and Jobs Act limits an individual’s State and Local Tax Deduction (“SALT” deduction) to $10,000 per calendar year. Adoption of State Proposals to Work Around the SALT Deduction Limitations In response to this new limitation, some state legislatures are considering or have adopted legislative proposals that would allow taxpayers to make transfers to funds controlled by state or local governments, or other transferees specified by the state, in exchange for credits against the state or local taxes that the taxpayer is required to pay. …

Exploiting the New IRC 199A Pass-Thru Business Deduction Using Multiple Taxpayers

By Steven J. Oshins, Esq., AEP (Distinguished) The 2017 Tax Act was rushed in order to make it effective as of January 1, 2018.  Anything that is rushed certainly will create opportunities for creative estate planners who will exploit the new tax laws for the benefit of their clients.  The greatest opportunity business owners received from the Trump Tax Act is the new IRC 199A pass-thru business deduction.  This deduction allows certain taxpayers to deduct 20% of their Qualified Business Income. The Taxable Income Limitations For a married couple with taxable income of no more than $315,000 and for an…

ABA Heckerling Reports from the 2018 Heckerling Institute

For the past 19 years, the American Bar Association Section of Real Property, Trust and Estate Law with the permission of the University of Miami School of Law, releases several extensive reports highlighting the various lectures and proceedings of the Heckerling Institute, one of the nation’s largest estate planning conferences, held every year in January. This past January 2018, marked the 52nd Annual Heckerling Institute.  To view, download and access these extensive reports, please click here to visit the ABA’s website. Further, at the above website, you can also access reports from prior Heckerling Institutes as well. We, at The…

The New IRC 199A Pass-Thru Business Deduction: Applying the 28.57% Magical W-2 Formula

By Steven J. Oshins, Esq., AEP (Distinguished) The greatest opportunity business owners received from the Trump Tax Act is the new IRC 199A pass-thru business deduction.  This deduction allows certain taxpayers to deduct 20% of their Qualified Business Income. However, not every taxpayer can receive this deduction, so estate planners have a huge opportunity to exploit the new statute by educating themselves with the details of the new statute. For a married couple with taxable income of no more than $315,000 and for an unmarried individual with taxable income of no more than $157,500, there are minimal rules and the…