JUNE, 2009
In a recent legal memorandum, the IRS stated that it can assess, under IRC Sec.
6695A, a gross valuation misstatement penalty against an appraiser for preparing
erroneous estate- and gift-tax appraisals after May 25, 2007. The Pension
Protection Act of 2006 (P.L. 109-280) added IRC Sec. 6695A to the tax law.
Generally, it states that if (1) a person prepares an appraisal and knows, or
reasonably should have known, that it will be used in connection with a return
or a claim for a refund, and (2) the claimed value of the property based on the
appraisal results in a substantial or gross valuation misstatement within the
meaning of IRC Sec. 6662(h), then a penalty should be assessed against the
appraiser. Under IRC Sec. 6695A, the penalty to be assessed is the grater of
$1,000 or 10% of the amount ...>> full
posted by ADMIN June 24, 2009 10:19 AM Estates
Widows and widowers who don’t want to sell their house right away will get a tax break under a new law. The law gives surviving spouses two years to sell their house and receive the full $500,000 capital gains exclusion that married couples are entitled to.
Couples who are married and file taxes jointly can sell their main residence and exclude up to $500,000 of the gain from the sale from their gross income. Single individuals can exclude only $250,000. Under the previous law, if a spouse died, the surviving spouse could file jointly — and therefore get the full $500,000 exclusion — only for the year in which the spouse died. The new law allows surviving spouses to get the full $500,000 exclusion if they sell their house within two years of the date of the spouse’s death and other ownership and use requirements have been met. The result ... >> full
posted by ADMIN June 09, 2009 4:15 PM Estates
Once you've taken the step to create a will and get your estate plan in order, you need to figure out what to do with the will itself. It is important to keep track of the location of your current will as well as any old wills.
Where to keep a will
The safest place to keep the original copy of your will is in a bank safe deposit box. If you keep the will at home, even if it is in a safe–you run the risk of it being stolen or being destroyed in a fire. Some attorneys may keep the original copy of the will. But if you leave the will with your attorney, make sure the attorney receives updated contact information from you when you move. That way if the attorney moves offices or retires, he or she will know where to find you and you will know ... >> full
posted by ADMIN June 09, 2009 4:05 PM Wills
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