Revenue Rule 2023 - Law Offices of Ann Margaret Carrozza
Revenue Rule 2023 Don’t Let Overzealous Tax Planning Trigger New Taxes! My phone has been ringing off the hook-(ask someone over 50 to translate). The calls-and emails, are in response to recent IRS Revenue Ruling 2023-2. The ruling states that assets transferred into an irrevocable trust, which are not includible in the taxpayer’s Estate at death, will go to the new owner with “carryover basis” as opposed to a “stepped up” or Fair Market Value cost basis. In other words, assets in this trust go to the trust beneficiary with a big latent tax hit. Many people who have irrevocable trusts, are understandably panic-stricken by the notion of causing capital gains taxes for their loved ones. Who should be worried by this recent ruling? Only people who chose the wrong trust! Here are some pointers to help you determine your tax exposure. Someone with Estate assets valued at less than the current Estate tax threshold (Currently .9 million on the federal level) is nor...