Estate and Gift Tax Update 2019
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The Tax Cut and Jobs Act of 2017 dramatically increased the Unified Estate and Gift Tax Credits available to individuals passing away in 2018 and beyond. The Department of Treasury has issued the new inflationary amounts for those passing away in 2019 as follows:
- Estate and Gift Tax Exemption Equivalent: $11,400,000.00
- Annual Gift Tax Exclusion Amount: $15,000.00
- Generation-Skipping Tax Exemption Equivalent: $11,400.000.00
These increased estate and gift tax limits and the State of Tennessee’s lack of either a gift or estate tax mean that most people will not pay estate or gift taxes.
Contact a member of the Estate Planning and Administration Practice Group for more information or for other estate planning needs.
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Wayfair
and You:
Sales Tax and the New Economic Nexus
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Sales tax obligations for retailers historically have been determined by a physical presence within a state, such as a store location. Now that online retailers with no storefronts are achieving significant levels of Internet sales, millions of dollars in potential sales tax revenue are at issue.
The Tennessee Department of Revenue previously promulgated “Rule 129” to address remote sales by out-of-state businesses to Tennesseans. The Rule required out of state dealers (also known as “remote sellers”) to register and pay taxes if sales of taxable personal property in Tennessee exceeded $500,000. The State of Tennessee has delayed its implementation of now Rule 129(2) until such time as a decision was reached by the U.S. Supreme Court in the case
South Dakota v. Wayfair Inc
. (a federal case on another state’s implementation of a slightly different “economic nexus” test) and the Tennessee General Assembly had a chance to review the same. That time is now at hand, with the 111th General Assembly having convened on January 8, 2019.
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You might be thinking, “My business already pays sales tax in Tennessee, so I don’t need to worry about this.” However, the
Wayfair
decision has far reaching implications. Many states that once required a physical presence are now using their own versions of the “economic nexus” test with varying requirements. Click on the link to
read the full article
.
Contact attorney
Jeannette Tysinger
to learn more about Internet sales tax compliance in 2019.
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Hunter, Smith & Davis Attorneys Speak at
January SHRM Chapter Meeting
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Attorneys Steve Darden, Mike Lattier and Mike Eastridge presented a “2019 Legal Update” on labor and employment law matters at the January 24th meeting of the Northeast Tennessee Chapter of SHRM.
As is customary with the January meeting, HS&D attorneys covered recent developments and likewise offered predictions about things that are likely to occur in the new year. Mike Lattier focused on important case decisions under the FMLA and under sexual harassment / discrimination. A recurring theme of Mike's presentation was that court decisions often emphasize the expectation that supervisors will be suitably trained regarding the laws that apply in the workplace, and failure to do so can lead to adverse court decisions for employers.
Mike Eastridge covered recent developments in immigration law including the considerable surge in ICE enforcement activity in 2018, I-9 audits and workplace investigations. Mike also explained how federal court decisions relating to efforts to restrict or eliminate DACA, Temporary Protected Status ("TPS") and asylum cases had indirect impacts on employment authorization for workers.
Steve shared information about a recent jury verdict in Florida in which a $21 million punitive damages award was made by the jury to a devout Catholic employee who was required to work on Sunday, contrary to her religious beliefs. In comparison, the back pay award was less than $40,000.00. Steve also addressed the Equal Pay Act and likewise made some predictions about developments likely to occur at the National Labor Relations Board.
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Hunter, Smith & Davis Working with
Sullivan County Animal Shelter
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The Sullivan County Animal Shelter has now reopened and has pets available for adoption. The shelter is located at 380 Massengill Road in Blountville, and shelter hours are posted online.
Attorney
Marcy Walker is assisting the county with the preparation of incorporation documents and applications for nonprofit designation. A new board of directors for the animal shelter is now in place and will assume responsibility for facility operations by the summer of 2019.
Marcy is an animal lover and has 2 dogs, Bella (Airedale Terrier, age 6) and River (Great Dane, age 3 1/2). River was rescued by the Humane Society and was very ill at the time that Marcy adopted her.
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Featured Representative Case Outcomes
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Fraud in Slip and Fall Case
Caroline Williams recently successfully represented a large-scale restaurant in a slip and fall case in which serious injuries were claimed. More specifically, the plaintiff claimed complex regional pain syndrome which allegedly caused complete and total disability.
Based upon evidence found through discovery, the restaurant countersued on the basis that the lawsuit was fraudulent. The restaurant prevailed and received a judgment against the plaintiff for attorney’s fees expended in defending the lawsuit .
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Defense of Professional Liability Claim against Insurance Agent
Jim Humphreys served as lead counsel for an insurance agent in a case brought by a homeowner whose house was destroyed by fire. The homeowner’s claim was denied due to claim misrepresentation on the application for insurance. The homeowner alleged the insurance agent breached his agreement to fill out the application “accurately.” Under Virginia law, a claim for negligently performing professional services is a contract claim.
The Court conducted a jury trial on a single question: Was the application for the homeowner’s policy a written contract with the agent? The jury answered this question “No.” Based upon this jury finding and a three-year statute of limitations to the homeowner’s claim against the insurance agent, the Court dismissed the action against the insurance agent with prejudice.
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Stephen M. Darden
Reappointed as Managing Partner
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Steve Darden was appointed as Managing Partner of Hunter, Smith & Davis at the firm’s recent annual meeting. This will be Steve’s second two-year term in the leadership role.
Steve is also Chair of the Labor & Employment practice group. Steve works with employers in an across-the-board employment practice, and in traditional labor matters as well.
Bill Argabrite previously served as managing partner for 11 years. Bill’s term ended with the firm’s centennial celebration in 2016, and he continues as an active partner in the firm with a focus on corporate and commercial transactions in the areas of banking, health care and real estate.
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About Hunter, Smith & Davis, LLP
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Hunter, Smith & Davis has a long and distinguished history during which we have had the privilege of representing businesses and many small and large industries in the Northeast Tennessee/Southwest Virginia region since the law firm was founded in 1916.
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Today, our attorneys continue to represent many commercial and professional organizations in the region and beyond from our offices in Kingsport and Johnson City, Tennessee.
The firm is honored to be recognized in the annual "Best Law Firms" list published by
U.S. News & World Report
and Best Lawyers.
Click on the link to
visit our website
.
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Hunter, Smith & Davis, LLP
1212 North Eastman Road
Kingsport, TN 37664
Phone: (423) 378-8800
Fax: (423) 378-8801
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Hunter, Smith & Davis, LLP
100 Medtech Parkway, Suite 110
Johnson City, TN 37604
Phone: (423) 283-6300
Fax: (423)283-6301
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