Estates and Trusts

The Tax Cuts and Jobs Act (2017) made fundamental changes to the tax treatment of alimony for divorces finalized after 2018. Substantial chanages were also made to the deductions related to dependent children.

Special rules apply when preparing a decedent’s final income tax return. Postmortem tax planning and the selection of a tax year for the estate can reduce income taxes paid by an estate. The portability of the surviving spouse’s unused estate tax exemption should also be considered.

The choice of entity should be considered to minimize taxes associated with the purchase of a business. The allocation of the cost of assets related to business acquisitions can potentially allow for an accelerated cost recovery of the purchase price.