In addition to achieving your philanthropic goals, such gifts can offset income and
estate tax liabilities.
The estate was also allowed to deduct interest on the $700,000 that the decedent's ex-wife loaned the estate so that it could pay its
estate tax liabilities.
Business ownership interests fuel your personal net worth, so a change in ownership status can present new opportunities to reduce your income and
estate tax liabilities while increasing your charitable contributions.
For example, as Illinois has an exclusion amount of only $2,000,000 from Illinois estate-tax liability, Illinois clients with a taxable estate in excess of $2,000,000 may want to consider the purchase of life insurance to fund Illinois
estate tax liabilities.
Kyl has been working on fine-tuning the revenue raising provisions--one option would allow for the prepayment of
estate tax liabilities at a lower rate.
AALU lobbyists, he said, are also telling congressional staffers that adding reunification "would also increase estate planning opportunities which utilize life insurance and help ensure that families have sufficient assets to meet
estate tax liabilities without selling family businesses and other assets.
Provide significant opportunities to reduce real
estate tax liabilities.
This type of gift can reduce various
estate tax liabilities.
These provisions have included: special use valuation--the valuation of property at its actual, rather than its potential, use in a family enterprise; the qualified family-owned business deduction; and the deferral of Federal
estate tax liabilities [1].
In March 1996, the IRS increased the deficiency associated with the charitable deduction because the
estate tax liabilities were now subject to refund and no longer entitled to the federal and state income tax deductions.
Financial difficulties caused by excessive
estate tax liabilities are a frequent cause of business failures.
Tax legislation now in Congress could add millions of people to the list of those with
estate tax liabilities.
