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.
Relevant guidance that has already been released:
- Clarification of deductibility of expenses described in Section 67(b) and (e) that are incurred by estates and non-grantor trusts.
- Proposed regulations under Section 199A (final regulations remain in the Plan).
- Initial guidance on Opportunity Zones under Sections 1400Z-1 and 1400Z-2.
- Regulations under Section 170 providing rules governing the availability of the charitable contribution deduction when a taxpayer received or expects to receive a state or local tax credit.
Relevant items remaining in the Plan:
- Additional guidance under Section 1361 regarding electing small business trusts.
- Regulations under Section 2010 addressing the computation of the estate tax in the event of a difference between the basic exclusion amount applicable to gifts and that applicable at the donor’s date of death.
- Guidance under the new partnership audit rules.
- Guidance regarding the excise taxes on donor advised funds and funds management.
- Guidance under Section 4941 regarding a private foundation’s investment in a partnership in which disqualified persons are also partners.
- Guidance on the basis of grantor trust assets at death under Section 1014.
- Final regulations under Section 2032(a) regarding the imposition of restrictions on estate assets during the six month alternate valuation period.
- Regulations under Section 2053 regarding personal guarantees and the application of present value concepts in determining the deductible amount of expenses and claims against the estate.
- Regulations under Section 7520 regarding the use of actuarial tables in valuing annuities, interests for life or terms of years, and remainder or reversionary interests.
With any federal government shut down impacting IRS operations, it remains to be seen how much of this Plan will actually be accomplished with 2018 – 2019. Check back here for developments.