Taxpayer Relief Act of 1997 reduces top rates on capital gains taxes and makes major changes to estate, gift, generation-skipping transfer and home sales taxes
The Taxpayer Relief Act of 1997 changed income, gift, estate and generation skipping transfer taxes in significant ways. The most far-reaching changes are to the capital gains tax rules governing the change in primary residence ownership. Changes to the gift, estate, and generation-skipping transfer taxes will benefit taxpayers of means, mainly those who own closely held businesses. The call for estate and gift tax reform came largely from a concern that family businesses would be endangered by huge inheritance taxes.
Publication Name: The National Law Journal
Gifts of nonvested employee stock options are not completed gifts for estate and gift tax purposes
The IRS ruled in Revenue Ruling 98-21 that completed gifts do not result from the transference of nonvested stock options from executives to family members directly or through trusts. Gifts become complete for practical purposes when vesting occurs because the ruling requires unconditional donee rights to exercise the options. The effective requirement of vesting can result in estate planning issues arising from substantial appreciation.
Publication Name: Tax Management Compensation Planning Journal
- Abstracts: IRS rules that split-dollar, second-to-die life insurance arrangement does not create S corporation second class of stock
- Abstracts: The internationalization of the war on drugs and its potential for successfully addressing drug trafficking and related crimes in South Africa
- Abstracts: McVeigh's trial lean and trim; judge and prosecutors lauded, but defense gets mixed reviews. part 2 Let us be 'officers of the court.'
- Abstracts: Law and justice: co-production as the new imperative. Are Workfare participants "employees"?: legal issues presented by a two-tiered labor force
- Abstracts: In-house counsel lead IPO charge; manufacturer's plans to go public present inside lawyers with a 'steep learning curve.' (Steelcase Inc.)(Closely Held Companies) part 2