Dec 19
posted by Carl L. Jones in
Gift Tax, Estate Planning
| 0 Comments
There are two main considerations when deciding when to make a gift of property. The first is estate tax, and the second is property basis.
Mar 8
posted by Carl L. Jones in
Gift Tax, Estate Planning
| 0 Comments
A self-canceling installment note (SCIN) is a note that includes a clause that cancels the remaining balance upon the death of the original holder. There are advantages for both the seller and the buyer of a SCIN. The seller is able to freeze the value of the sold property at the face value of the note and may be able to avoid the inclusion of the note in his gross estate. The seller can also spread the payment of taxes on gain on appreciated property over the life of the note.
Nov 19
posted by Carl L. Jones in
Gift Tax
| 0 Comments
Generally, transfers of intangible property by a nonresident not a citizen of the United States are not subject to transfer taxation. (26 U.S.C.A. § 2501.) However, there is an exception where the donor is subject to the alternative income tax regime of §877 (Expatriation to avoid tax). (Id.) For these nonresidents the transfer of intangible property is subject to tax if the property is deemed situated within the United States. (§ 2511.) Debt obligations, such as promissory notes, of a United States person owned and held by a nonresident are deemed to be situated within the United States. (§ 25.2511-3.)
ATTENTION: While the blog entries have been written by an attorney, tax law is very complex and changes extremely fast. Every effort is made to keep the site up to date, but there is no guarantee that the entries reflect current tax law. You are advised to always seek the advice of an attorney, accountant, or other professional when dealing with complex tax matters.
All articles are copyrighted. Any reproduction or use for commercial purposes is strictly prohibited without permission from the author.
IRS CIRCULAR 230 NOTICE: ANY TAX ADVICE CONTAINED IN THIS ELECTRONIC COMMUNICATION (INCLUDING ANY ATTACHMENTS) IS NOT INTENDED TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE OR APPLICABLE STATE OR LOCAL TAX LAW PROVISIONS, OR PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PERSON OR PARTY ANY TAX-RELATED MATTER ADDRESSED HEREIN.
