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This week's Helpful Hint is:
"IRS Regulations Which Apply To Accruals"
A client recently asked which IRS regulations apply to accruals for estate tax valuations.
Here is an extract from our website (see below).
If an equity is ex-dividend for a cash distribution on or before the valuation date but is of record after the valuation date, the dividend is included in the report and is added to the security's mean value.
[ IRS Reg. 20.2031-2(i) ]
If an equity is ex-dividend and record for a cash distribution on or before the valuation date, but is payable after the valuation date, a separate dividend accrual entry is made.
[ IRS Reg. 20.2032-1(d) (4) ]
Interest is accrued for bonds from and including the last payable date up to and including the date of death.
[ IRS Reg. 20.2032-1(e) ]
Interest accruals are calculated on a 30/360 day basis for corporate, government agency and municipal bonds. An actual day basis is used for US Treasury Bonds and notes.
[ MSRB Rule G-33 ]
The complete information is available by clicking HERE.
Please send us an EMAIL if you have questions.
Last week's Helpful Hint was:
"Export to comma delimited & Excel"
You can read last week's eNewsletter by clicking HERE.
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