Alerts & Updates
Here Come the Taxes…Maybe?
March 17, 2021With the recent passage of the American Rescue Plan, President Biden’s $1.9 trillion stimulus package, it is natural to consider what kind of revenue generating legislation may be coming in the next months and years in order to pay for what has now been three separate rounds of stimulus bills to address the challenging economic conditions brought on by the Covid-19 pandemic.
What will happen to estate, gift and generation-skipping transfer tax exemptions in 2021 and beyond?
January 21, 2021With the inauguration of President Joe Biden and a congress narrowly controlled by the Democratic party, many clients and estate planners have begun to worry about what, if anything, will happen to the federal estate, gift and generation-skipping transfer (“GST”) tax exemptions and rates in 2021 and beyond.
New York Changes Durable Power of Attorney Law
January 11, 2021On December 15, 2020, Governor Cuomo signed into law a bill changing New York’s durable power of attorney statutory form. The goal was to simplify the form and alleviate practical problems that result from the current statutory form.
IRS Issues Final Regulations on Taxation of Carried Interest under IRC 1061
January 8, 2021On July 31, 2020, the Internal Revenue Service issued proposed regulations regarding taxation of an “Applicable Partnership Interest” or API, under Internal Revenue Code (IRC) section 1061, clarifying and elaborating on the taxation of API (including items such as carried interest). In 2017, under what is commonly known as the Tax Cuts and Jobs Act, Congress enacted IRC 1061.
2020 Cummings & Lockwood Annual Update
December 31, 20202020 was an especially challenging period. An unprecedented COVID-19 pandemic, a world-wide health crisis, associated disruptions to businesses and the global economy, and a bitterly divided election created stress and uncertainty throughout the year.
IRS Announces 2021 Estate and Gift Tax Inflation Adjustments
November 16, 2020In Revenue Procedure 2020-25, the IRS announced the inflations adjustments for the estate and gift tax exemptions and annual exclusions.
IRS Opens the Door to Pass-Through Workaround for SALT Deductions
November 16, 2020The Tax Cuts and Jobs Act (“the 2017 Tax Act”) limited individuals to a $10,000 cap on deducting individual state and local taxes paid in a calendar year, starting in 2018 and set to sunset by 2026.
September 2020 Client Update
This annual update analyzes the implications of a Trump and Biden presidency with regard to estate, gift and generation-skipping transfer (GST) taxes, as well as describes the benefits of making gifts in 2020 and the various gifting techniques to consider.
CLIENT ALERT: IRS Issues Proposed Regulations on Taxation of Carried Interest under IRC 1061
August 9, 2020On July 31, 2020, the Internal Revenue Service issued proposed regulations regarding taxation of an “Applicable Partnership Interest” or API, under Internal Revenue Code (IRC) section 1061, clarifying and elaborating on the taxation of API (including items such as carried interest). In 2017, under what is commonly known as the Tax Cuts and Jobs Act, Congress enacted IRC 1061.
The CARES Act Suspends Required Minimum Distributions for 2020
May 25, 2020The Coronavirus Aid, Relief and Economic Security (CARES) Act suspended required minimum distributions (“RMDs”) for 2020 for retirement plans such as 401(k)s, 403(b)s, 457(b)s, SEP IRAs, Simple IRAs, and traditional IRAs. A RMD is the amount of money that is required to be withdrawn by the participant when the participant has reached a certain age or by the beneficiary of an inherited IRA
CLIENT ALERT: Connecticut and New York Authorize the Virtual Execution of Wills in addition to Virtual Notarization in response to the Outbreak of Covid-19
April 12, 2020Many legal documents, especially estate planning and real estate related documents that will be recorded on land records, require notarization and witnesses.
CLIENT ALERT: IRS to Accept Digital Signatures and Email
March 31, 2020In response to the COVID-19 pandemic, effective immediately, the IRS will accept scanned, photographed, and digital signatures on certain documents relating to the determination or collection of tax liabilities. This temporary measure is to assist taxpayers and tax professionals in completing tasks remotely.