In a recent U.S. Tax
Court case, Estate of Barbara Galli, Deceased, Stephen R. Galli, Executor,
et al. v. Commissioner of Internal Revenue, the court addressed a tax
dispute involving a $2.3 million purported loan transfer between Barbara Galli
and her son, Stephen, in 2013. The case, decided via summary judgment, centered
on whether
Gutter Chaves Josepher Rubin Forman Fleisher Miller P.A. Blogs
Blog Authors
Latest from Gutter Chaves Josepher Rubin Forman Fleisher Miller P.A.
Key Questions & Answers Regarding Florida’s New Law Restricting Real Estate Ownership by Persons of Foreign Countries of Concern
To What Does the New Act Apply?
Generally, it applies to acquisitions of
defined Florida real property interests by certain described owners. There are
three general categories of prohibited transfer and ownership. To apply the new
provisions, one needs to focus on two separate issues regarding each of the
three categories of prohibition described in…
New Decision Is a Welcome Clarification of Florida Waiver of Homestead by Deed Issues [Florida]
Fla. Stats. Section 732.7025 provides that if a spouse transfers their interest in property that is or will be homestead property of their spouse by using specific language in the deed, then the transferring spouse waives all homestead rights in such property. Thus, for example, their spouse can convey the subject property at death without…
Landmark Florida Supreme Court Decision on Homestead Protections Has Been Written Out of the Law by Two Appellate Courts, and No One Appears to Have Noticed
SUMMARY: In Havoco of America, Ltd. v. Hill, the Florida Supreme Court ruled that the Florida constitutional protections of homestead property against creditor claims trump Florida’s fraudulent transfer laws. Thus, homestead protections include nonexempt assets that are added to or invested in a homestead, even if added with the intent to delay, hinder or defraud creditors.…
IRS COLLECTION ACTIVITIES AGAINST OVERSEAS ASSETS
The IRS Chief Counsel’s Office has issued a Program Manager Technical Advice regarding questions about IRS activity to collect tax delinquencies from assets located outside of the U.S. While some of the Advice is fairly technical, it does provide some interesting information on what the IRS can and cannot do in this arena and some…
New Retirement Plan Distribution Rules Likely on the Way
Several years ago, the SECURE Act was passed, which had major changes to the tax rules relating to retirement plan distributions. Another act on that subject is working through Congress – the Enhancing American Retirement Now (EARN) Act. A version has passed the House of Representatives, with the Senate working on its own version. Given…
Time Period to File Estate Tax Return to Make Portability Election Extended to 5 Years
If a spouse dies and his/her estate does not fully use the decedent’s remaining unified credit, the surviving spouse can use the unused credit if certain conditions are met. One of the conditions is that an estate tax return is filed for the decedent that makes a portability election, even if no estate tax return…
HUSBAND USES TENANCY BY ENTIRETIES PROPERTY TO MAKE A GIFT TO GIRLFRIEND – WHAT’S THE REMEDY?
In Florida, tenancy by entireties (TBE) property of two spouses provides various benefits. These include protection of the assets against creditors of only one spouse, avoidance of probate, and protection of one spouse from unauthorized disposition of TBE property by the other.Regarding this last point, it is well settled in Florida that an estate by…
WHAT DOMESTIC ESTATE PLANNERS SHOULD KNOW ABOUT BRUSSELS IV
Ask many estate planners in the U.S. about Brussels IV, and you are apt to get the response “Brussels for what?” While in effect since 2015, it is more unknown than known. In most circumstances, Brussels IV will not impact estate planning in the U.S. But if a U.S. citizen owns assets situated in the…
FBAR Case Reversed – Nonwillful Filing Penalties Based on Number of Accounts Not Reported
Back in 2000, I wrote here about a case where a taxpayer did not report multiple foreign accounts on an FBAR. The question for the court was whether the $10,000 penalty for a nonwillful failure to file meant $10,000 per return not filed, or $10,000 per account not reported on the return. For a multi-year…