As we wrote here earlier this year, Governor Cuomo proposed to extend the “clawback law,” which had expired on January 1, 2019, in his fiscal year 2020 Executive Budget. As a reminder, the clawback law pulled the value of all taxable gifts made within three years of a New York resident taxpayer’s death back into the New York resident taxpayer’s estate for New York estate tax purposes.
After the Tax Cuts and Jobs Act of 2017 (the “2017 Act”), wealthy taxpayers have the opportunity to “lock in” the temporary increase in the federal estate and gift tax exemption by making large lifetime gifts. Governor Cuomo’s Fiscal Year 2020 Executive Budget proposes extending a law that could subject such gifts to New York estate tax.
The late, great Yogi Berra summed up the effects of inflation when he famously said, “A nickel ain’t worth a dime anymore!” Although inflation can be detrimental to your pocketbook, certain annual inflation adjustments to many federal tax provisions benefit taxpayers by allowing the tax laws to keep pace with inflation.
The early ‘70s saw a spate of so-called “disaster movies,” which involved burning skyscrapers, dysfunctional airports and, perhaps the most memorable of all, a cruise ship hit by a mammoth rogue wave that turned the ship over, forcing the passengers to make their way up to the hull.
Following the enactment of Tax Reform, practitioners have been anxiously awaiting the announcement of the 2018-2019 Priority Guidance Plan to see what guidance has been prioritized.