Should the new “SECURE Act” changes encourage taxpayers to use a Charitable Remainder Trust (CRT) as recipient of IRA benefits?
In two recent Kulzer & DiPadova newsletters, we addressed a significant change to the law made by the Further Consolidated Appropriations Act, 2020 (H.R. 1865, P.L. 116-94), the yearend funding measure signed by President Trump on December 20, 2019. The first article, dated December 30, 2019, summarized the SECURE Act,…
Despite Late Filing New Jersey District Court Abates $450,959.50 Late Filing Penalty
In the just decided case of the Estate of Agnes R. Skeba v. United States; No. 3:170-cv-10231, the New Jersey District Court abated a $450,959.50 late filing penalty even though the federal estate tax return was filed nine months late. On March 10, 2014, the due date for the estate…
The Death of the “Stretch” IRA
A distressing element of the 2019 SECURE Act (Setting Every Community Up for Retirement Enhancement Act, part of the Further Consolidated Appropriations Act, 2020 (P.L. 116-94, H.R. 1865)), the late 2019 spending measure to fund the government, is a provision that will create the need for dramatic changes to estate…
Meet Our New Shareholder & Associate
Kulzer & DiPadova is pleased to announce that an associate has been elected shareholder and a new associate has joined the firm. Kulzer & DiPadova proudly announces that Kristin Schmid J.D, LL.M. has become a shareholder in the firm. “Kristin has been a tremendous resource on a variety of…
New Jersey Enacts Salt Work-Around Pass-Through Entity Tax
On January 13, 2020, Governor Murphy signed into law P.L.2019, c.320 (S3246/A4807) the “Pass-Through Business Alternative Income Tax Act.” The new law establishes an elective entity-level alternative income tax (AIT) to be paid by pass-through entities (PTEs). Pass-through income remains taxable to owners, but the new law grants a refundable…
Secure Act: Major Changes for Retirement Planning
On December 20, 2019, President Trump signed into law the Further Consolidated Appropriations Act, 2020 (H.R.1865 P.L. 116-94)(“Appropriations Act”). Division O of the Appropriations Act (https://www.congress.gov/bill/116th-congress/house-bill/1865/text) included the Setting Every Community Up for Retirement Enhancement Act of 2019 (“Secure Act”) which provides the most expansive retirement plan legislation since the…
Final Clawback Regulations Released
On November 22, 2019, the IRS issued final regulations under a concept known as “clawback” of estate tax exemption. “Clawback” of estate tax exemption arises due to the manner in which the estate tax is calculated and occurs when an estate tax exemption amount decreases. When the Tax Cut and…
Taxpayer Wins Major Gift Tax Valuation Case
Mr. Jones established three trusts for his daughters in May 2009. He gifted voting and non-voting stock of Seneca Sawmill Co. (“SSC”) and limited partnership interest of Seneca Jones Timber Co. (“SJTC”) to the trusts. Together these entities operated a lumber and timber business. Mr. Jones filed a gift tax…
IRS Releases Inflation-Adjusted Amounts for 2020
The income tax brackets, standard deduction amounts, and many other tax items are adjusted annually for cost-of-living increases. On Tuesday, November 6, 2019, the IRS released the adjustments that will apply for the 2020 tax year. Below is a highlight of some of those adjustments. Ordinary income. For married individuals…
Van Riper v. Director, Division of Taxation: New Jersey Supreme Court Hears Important New Jersey Inheritance Tax Matter
On October 8, 2019, the Supreme Court heard oral arguments in the case of Van Riper v. Director, Division of Taxation, 2018 WL 4761357 (App. Div. October 3, 2018). This case involves an inheritance tax dispute in which the New Jersey State Bar Association (NJSBA) filed an Amicus (Friend of…