Tax Warrior Chronicles

Biden Tax Proposals & Highlights from the Green Book:  Retroactive Capital Gains Tax Increase and the Repeal of the Step-up in Basis, Among Others

Posted on Fri, Jun 11, 2021

With Democrats needing to convince 10 Republicans to cross the aisle to enact a tax proposal in the Senate, President Biden’s tax proposals are most likely to move into, and take shape within, the budget reconciliation process where a simple majority of 51 votes are needed. In a practice not seen since 2016, on May 28, 2021, the Biden Administration reviewed and issued an accompaniment to the Administration’s Budget, referred to as the Green Book, that offers general explanations of the revenue proposals. The Green Book contained more detail, insight, and a couple of surprise changes to proposals in The American Jobs Plan and the American Families Plan, which President Biden released

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Millennial Series Part XI: Holiday Gifts and Roth IRAs

Posted on Wed, Dec 13, 2017

By: Tim Carroll, CPA, MST


Retirement savings doesn’t top the holiday wish list for many young people, but it should.  You can help create the next generation of savers this season by gifting contributions to retirement plans and educating the children in your life about why your gift is worth more than an iPhone X or Nintendo Switch.

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Millennial Series Part X: Saving for College - 529s vs. UTMAs

Posted on Tue, Nov 28, 2017

Planning for your child’s college education can be extremely stressful, especially with how much tuition seems to increase every year. We discussed several tax-saving options last week in a post. This blog post, however, will focus specifically on these popular options: 529 plans and accounts created under the Uniform Transfers to Minors Act (UTMA).

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IRS Formally Withdraws Proposed Estate Transfer Regs

Posted on Fri, Nov 03, 2017

By: Karolyn Banks, CPA, MT


The IRS recently withdrew controversial proposed regulations under Internal Revenue Code (IRC) section 2704 that would have placed restrictions on the ability to use discounts for lack of marketability and control.  The Tax Warrior perspective of the originally proposed regulations was that family business planning would be more challenging. Here’s why we believe family businesses dodged the proverbial bullet.

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Gifts & Inheritances from Abroad – What You Need to Know

Posted on Tue, Mar 21, 2017

By: Stephanie Otake, CPA


Most of us are familiar with the email scam naming us as the beneficiary to a wealthy foreign relative’s fortune. But, have you ever stopped to think, what if this happened for real and a known foreign relative bequeathed to you a piece of their estate? Gifts and inheritances from abroad can raise several tax compliance issues. Generally, no tax is due; however, there are exceptions.

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Do Attached Strings Affect the Value of a Gift (for Tax Purposes)?

Posted on Thu, Feb 23, 2017

The busy season has begun and The Tax Warriors® are in the thick of it. And since now is the time when tax tips matter most, we’ve called some friends to share their tax-related expertise. In this blog post, Hempstead & Company shares its insight on how a 2015 Tax Court case may help you determine the value of a gift.

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New York Estate Tax – Watch Out for That Cliff!

Posted on Tue, May 27, 2014

With the passage of the New York State Executive Budget legislation in April 2014, Governor Cuomo may get his wish to keep wealthy New Yorkers in New York.  But maybe not . . .

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Crummey Trusts – An Effective Wealth Transfer Vehicle

Posted on Thu, Feb 27, 2014

Taxes are all we think about this time of year as we plan to file our previous year’s returns. Those with significant wealth often look for ways to transfer assets to the next generation with little or no transfer taxes. No one wants to add Uncle Sam to their estate beneficiary list.

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Booming Stock Market Puts Spotlight on Zeroed-Out GRATs

Posted on Mon, Jan 20, 2014

Grantor retained annuity trusts, or GRATs, have historically been used by wealthy individuals to save transfer tax (estate, gift, and inheritance tax). Sometimes, individuals have structured GRATs in such a way that substantial amounts of wealth can be transferred to family members at zero estate or gift tax cost. This may be especially true for those who have set up GRATs in the past few years and took advantage of the spectacular stock market returns in 2013. A provision in the President's Fiscal Year 2014 Budget would crack down on such zeroed-out GRATs and other perceived abuses in relation to GRATs. While this provision has been included each year in the President's annual tax

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Draft Gift Tax Return for 2013 Reflects Changes in Law

Posted on Tue, Nov 05, 2013

The IRS has released a draft of Form 709*, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions for gifts made during 2013. The draft form and instructions reflect indexing and law changes for gifts made in 2013.

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