Is This The Beginning Of The End?
May 1, 1998Here are some odds you can’t find in Las Vegas: There is a better-than-even chance, in my opinion, that U.S. estate and gift taxes will be repealed by the year 2010. Not just eased, as under last year’s tax law, but completely wiped out. The foundation for repeal has already been laid, partly by the 1997 legislation but more so by changes in the economy, by public attitudes toward wealth …
How Now, Sacred Cow? Tax Rules To Beef About
August 1, 1997Finding goofy rules in the tax code is a game everyone can play. Sure, there are plenty of ways the government sticks it to unwary taxpayers. We listed some in our last issue (“Ten Tax Rules Guaranteed to Drive You Crazy“, Sentinel May 1997). But lots of other provisions let taxpayers with the right political demographics off the hook when broader policy needs might argue otherwise. Is it fair to …
Position Yourself For Tax Changes
May 1, 1997Affluent taxpayers are likely to see some of the best tax-planning opportunities in years under the balanced budget accord that was reached by White House and Congressional negotiators this month. In some cases the deal will take us back to the future by reviving estate and income tax strategies that have been in the deep freeze since the late 1980s. While details of the tax law changes are still uncertain, …
Does Your IRA Owe Tax?
May 1, 1997Do you look at your IRA or other retirement accounts as a good place to try out your aggressive investment strategies without worrying about current tax consequences? If you do, watch out — a wrong move could make you pay tax on income that stays in your retirement plan. Few people realize that these tax-sheltered plans are subject to current tax on “unrelated business taxable income” (UBTI). The UBTI rules …
IRS Trap For Nonresident Aliens
May 1, 1997With rising interest rates pummeling the U.S. stock and bond markets alike, short-term investments such as Treasury bills are looking much more attractive these days. But nonresident aliens should be careful: The IRS has set a trap that could snare your family in a very costly dispute. This is going to come as a surprise to many non-Americans. Back in 1984 Congress invited foreigners to buy our deficit-swollen national debt …
Ten Tax Rules Guaranteed to Drive You Crazy
May 1, 1997Tax professionals are just about the only Americans who do not complain about the complexity of our tax laws. After all, if mere commoners could find their fiscal fortunes in the Internal Revenue Code, how would oracles like us ever command $400 an hour? No, it is not complexity that rankles. Writing tax law is an art that requires Congress to balance the needs of the Treasury, the condition of …
No ‘Defense’ In Fed Marriage Act
September 1, 1996Nasty things sometimes crawl out of legislative bodies in an election year. This year’s prime example is the “Defense of Marriage Act,” a bill that sailed through the House in July that would deny recognition of same-sex marriages. (Webmaster’s Note: The Senate approved the Defense of Marriage Act 85-14 on September 10, 1996 after this issue of Sentinel went to press. President Clinton signed the legislation into law on September …
How the Experts Break Out Of Gridlock
June 1, 1996People who are stuck in traffic get impatient. When caught in legislative gridlock, the temptation to take a shortcut across the median is too strong for some to resist. This explains why tax officials are resorting to scare tactics to make policy changes that the Clinton administration has no prayer of getting through Congress. It’s the newest thing in democracy: legislation by announcement. Want to get in on the game? …
IRS Takes Shot at Split-Dollar Life
June 1, 1996Riddle: What kind of rifle should a blind hunter use? A loud one. If he misses the target, maybe he can scare it to death. Some recent pot shots by the Internal Revenue Service against a popular planning technique, “split-dollar” life insurance, recall our blind hunter. It may not matter that the Service seems to be firing in the dark. Split-dollar life has always been something of an adventure, so …
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