April 2010

Uncertainty Abounds with Estate Tax

From WebCPA.com.

Both the American Institute of CPAs and the American Bar Association Section of Taxation have urged Congress to correct the current state of federal estate, gift and generation-skipping transfer taxes.

In recent letters to Congressional lawmakers, both bodies stressed the uncertainty affecting taxpayers and their advisors.

“The expiration of the estate and generation skipping transfer (GST) taxes at the end of 2009 and the imposition of the carryover basis rules are causing tremendous uncertainty for taxpayers and their advisers,” stated the AICPA.

“The planning and administration of estates, and the administration of the income tax, are all significantly affected by the undecided future of these transfer taxes,” it continued. “The possibility of re-enactment for 2010, the future of the tax systems for 2011 and beyond, and the practical problems of identifying costs that must be considered as part of tax basis for assets distributed from estates created after December 31, 2009 are the most pressing concerns in this area.”

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