Revenue Rulings

Thu
10
Jul

 

Guidance Issued on Dividing CRTs

The Service has issued a long-awaited revenue ruling in which it addresses two situations in which a charitable remainder trust is divided pro rata into two or more separate trusts. Such divisions are common when the income recipients desire to separate their interests and when joint income recipients divorce.  MORE »
Wed
18
Jun

 

July 7520 Rate Up to 4.2%

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-33 indicates the applicable federal rate under section 7520 for July 2008 is 4.2%; up 0.4% from the June rate of 3.8% and up 1.0% from the May rate of 3.2%.  MORE »
Wed
21
May

 

June 7520 Rate Bounces to 3.8%

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-28 indicates the applicable federal rate under section 7520 for June 2008 is 3.8%; up 0.6% from the May rate of 3.2% and up 0.4% from the April rate of 3.4%.  MORE »
Tue
22
Apr

 

May 7520 Rate Down a Tick to 3.2%

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-24 indicates the applicable federal rate under section 7520 for May 2008 is 3.2%; down 0.2% from the April rate of 3.4% and down 0.4% from the March rate of 3.6%.

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Wed
19
Mar

 

April 7520 Rate Dips to 3.4%

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-20 indicates the applicable federal rate under section 7520 for April 2008 is 3.4%; down 0.2% from the March rate of 3.6% and down 0.8% from the February rate of 4.2%.  MORE »
Mon
03
Mar

 

Service Issues Favorable Guidance Regarding Gifts of Appreciated Property by S-Corporations

The IRS has released a revenue ruling that confirms many of our hopes regarding charitable gifts of appreciated property by a Subchapter S corporation. Normally a shareholder's income tax deduction for an S corporation's business losses is limited to the shareholder's basis in the corporation's stock. The IRS has now confirmed that charitable gifts can qualify for better tax treatment. Click through to read Chris Hoyt's analysis.  MORE »
Mon
25
Feb

 

March 7520 Rate Dips to 3.6%; Service Issues Correction

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-11 indicates the applicable federal rate under section 7520 for March 2008 is 3.6%; down 0.6% from the February rate of 4.2% and down 0.8% from the January rate of 4.4%. Note: The original announcement by IRS incorrectly stated the March 7520 rate at 4.0%  MORE »
Tue
22
Jan

 

7520 Rate for February 2008 Down to 4.2%

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-9 indicates the applicable federal rate under section 7520 for February 2008 is 4.2%; down 0.2% from the January rate of 4.4% and down 0.8% from the December rate of 5.0%.  MORE »
Dec
20
2007

 

7520 Rate for January 2008 Down to 4.4%; Deemed PIF Rate 4.8%

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-4 indicates the applicable federal rate under section 7520 for January 2008 is 4.4%; down 0.6% from the December 2007 rate of 5.0% and down 0.8% from the November rate of 5.2%. In addition, the deemed rate of return for transfers during 2008 to pooled income funds that have been in existence for less than three taxable years is 4.8%.  MORE »
Nov
21
2007

 

December CFMR Dips to 5.0%

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2007-70 indicates the charitable federal midterm rate under section 7520 for December 2007 is 5.0%; down 0.2% from the November and October rates of 5.2%.  MORE »