Proposed regs. on trust and estate deductions

September 7, 2020 "Time Saver & Helpful Hint" eNewsletter

Weekly News Update

Synopsis: The IRS published proposed regulations (REG-113295-18) on May 11, 2020, to clarify that certain deductions allowed to an estate or nongrantor trust are not miscellaneous itemized deductions and, thus, are unaffected by the suspension of miscellaneous itemized deductions for tax years beginning after 2017 and before 2026.

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Weekly Time Saver & Helpful Hint

This week's topic is:

"Inverse Weighting For Three Day Weekends"

Monday, September 7 is the Labor Day holiday and all of the domestic exchanges are closed.

There can be some confusion regarding how to value these securities if a person dies on Saturday, Sunday, or Monday.

Means are inversely weighted with respect to the number of trading days between the valuation date and pricing dates. Because neither Saturday, Sunday, nor Monday are trading days, the mean for a three day weekend Date-of-Death is the straight average between Friday and Tuesday. This is explained in IRS regulation 20.2031-2(b)1 which you can take a closer look at by clicking HERE.

Last week's topic was:

"Form 1041 Estate & Trust Tax"

You can access the eNewsletter by clicking HERE.

Monthly Poll & Webinar

This month's topic is:

"Do you prepare IRS Form 1041 tax returns?"

Our August 31 Time Saver & Helpful Hint eNewsletter discussed how the IRS is responding to tax returns which they have not yet opened and corresponding erroneous balance due notices issued. The article says: "The problem has been particularly acute for taxpayers who are filing Form 1041 estate and trust tax returns and receiving the balance due notices."

Our September poll question is:

"Do you prepare IRS Form 1041 tax returns?"

You can participate by clicking 'Yes' or 'No' in the poll on the right.

If your answer to our poll question is 'Yes,' then our complimentary September 24 webinar may be of interest to you. Click HERE to learn more.

Do you prepare IRS Form 1041 tax returns in your office?

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Which valuations can I get from ESI-APPRAISE?

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IRS Form 706 Estate Tax
IRS Form 709 Gift Tax
Charitable Remainder Unitrust
Grantor Retained Annuity Trust
Domestic & Global Historical Pricing
Capital Changes
Cost Basis for Dividend Reinvestment Plans & Equities
1040 / 1041 Income Allocation to Calendar or Fiscal Year based on date of death

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· ESI-Direct: Value your ONESOURCE Trust & Estate securities without estate val software

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Valuations can be submitted/delivered via email, fax, overnight courier, or mail

Upcoming ESI-APPRAISE Events

Sep 7: Labor Day Holiday
Sep 24: 1040/1041 Webinar (11:30a ET)
Sep 24: System Maintenance (5:00p ET)

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