The 7520 rate for January 2020 remained at 2%.
The January 2020 Applicable Federal Interest Rates can be found here.
Based on the inflation measure provided by the Tax Cuts and Jobs Act and Consumer Price Index for the 12-month period ending August 31, 2019, Thompson Reuters Checkpoint has released their projected inflation-adjusted Estate, Gift, GST tax, and other exclusion amounts for 2020, as follows:
The unified estate and gift tax exclusion amount (gift and estate tax exemptions) for gifts made and decedents dying in 2020 will be $11,580,000 (up from $11,400,000 in 2019).
The generation-skipping transfer (GST) tax exemption for transfers made in 2020 will be $11,580,000 (up from $11,400,000 in 2019).
The gift tax annual exclusion amount for gifts made in 2020 will be $15,000 (the same amount as for gifts made in 2019 and 2018).
The annual exclusion for gifts to noncitizen spouses in 2020 will be $157,000 (up from $155,000 in 2019).
The special use valuation reduction limit for estate of decedents dying in 2020 will
Originally posted on BCLPCharityLaw.com.
Written by Summer Associate, Brandi Miller.
To simplify compliance for grantors and contributors to tax-exempt organizations, the IRS recently issued an updated revenue procedure (Rev. Proc. 2018-32) that combines previously scattered guidance on deductibility and reliance issues. The new revenue procedure explains when grantors and contributors may rely on a listing of an organization on an IRS database of organizations eligible to receive contributions under Sec. 170 for purposes of determining whether the grants or contributions may be deductible under Sec. 170.
The IRS maintains and updates two different publicly available databases on organizations eligible to receive tax-deductible contributions under Sec. 170. The first lists organizations that are eligible to receive tax-deductible charitable donations (eligible organization list), and the second is an extract of certain information concerning tax-exempt organizations from the IRS electronic Business Master File (the EOB MF Extract).
Historically, the eligible
With research and drafting assistance provided by our extern from Washington University School of Law, Rachael Lynch.
Now that we’ve scared you with the potentially high taxes for self-dealing in private foundations, what is self dealing?
Self dealing includes any of the following transactions:
1. sale or exchange, or leasing, of property between a private foundation and a disqualified person (click here for a definition of a disqualified person); 2. lending of money or other extension of credit between a private foundation and a disqualified person; 3. furnishing of goods, services, or facilities between a private foundation and a disqualified person; 4. payment of compensation by a foundation to a disqualified person; 5. transfer of income or assets of a private foundation to a disqualified person; and 6. agreement by a private foundation to make any payment to a government official (other than an agreement to hire the official when
Today, Congress passed a sweeping tax bill, as widely expected over the last few weeks. The bill passed solely along party lines, with no Democrats voting for the bill. President Trump is expected to sign the bill into law, shortly.
The changes in the transfer tax laws made by this bill are as follows: