Estate and Gift Tax Exemption Amount to Significantly Increase with Inflation

Estate and Gift Tax Exemption Amount to Significantly Increase with Inflation | Klug Counsel

Prepared by Gina Lee, Senior Associate at Klug Counsel Every year, the estate and gift tax “basic exclusion amount” (commonly known as the “estate and gift tax exemption amount”) is adjusted for inflation. The Tax Cuts and Jobs Act passed in 2017 doubled the estate and gift tax exemption amount from $5 million to $10 […]

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IRS will Prioritize Enforcement Under $80B Funding: Large Business and International Division

IRS 80B funding

Prepared by Arturo Meza, Foreign Associate at Klug Counsel On August 16, 2022, President Biden signed the Inflation Reduction Act into law. As part of the significant changes made by this legislation, the IRS will receive a budget increase of nearly $80 billion over the next ten years to improve four areas: enforcement, operations support, […]

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IRC §754 Election: Partner Signature No Longer Required for Partnership Basis Election

754 Election_Partner Signature No Longer Required

Prepared by Gina Lee, Senior Associate at Klug Counsel Treasury and the Internal Revenue Service (“IRS”) have finalized regulations that eliminate the requirement that an Internal Revenue Code (“IRC”) 754 election statement to adjust the basis of partnership property be signed by one of the partners of the partnership to be valid. To understand the […]

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Crypto Brokers and Exchanges Informational Reporting Likely Delayed

Crypto Brokers and Exchanges Informational Reporting Likely Delayed

The Treasury Department (“Treasury”) and the Internal Revenue Service (“IRS”) are likely to delay a January date for crypto brokers and exchanges to begin tracking and reporting data such as customers’ capital gains and losses. The move will delay when the IRS receives the same kind of data from crypto transactions as it receives for […]

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Deducting Cryptocurrency Losses

Cryptocurrency Losses

Many investors in cryptocurrencies have seen their investments lose significant value in recent months. U.S. taxpayers who have losses from their digital asset investments or have had them stolen can deduct losses. For individual taxpayers, typically the loss from the sale of crypto assets will result in a capital loss.  Capital losses can offset capital […]

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Bitcoin Miners Experience Significant Losses Over Declining Market Prices

Bitcoin Miners Experience Losses | Crypto Tax Lawyers

Prepared by Chris Klug, founder of Klug Counsel The recent decline in market prices for Bitcoin has taken a toll on miners, who have seen their profits slashed.  According to data from BitInfoCharts, the average daily revenue for a Bitcoin miner has declined from around $13,000 at the beginning of 2018 to just $4,000 by […]

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IRS on Digital Assets

IRS on Digital Assets

Prepared by Gina Lee, Senior Associate at Klug Counsel The Treasury Department is looking to require information reporting on digital asset transactions similar to other financial instruments, such as stocks and bonds. In an April 7 speech at American University outlining the Treasury’s digital asset policy, Treasury Secretary Janet Yellen said: that “appropriate guardrails” are […]

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