Will the Conversion of a Trust to a Unitrust Under the New Arkansas Uniform Fiduciary Income and Principal Act Cause a Negative Tax Result?
March 16, 2022
by Ashley L. Gill
The Arkansas Uniform Fiduciary Income and Principal Act (the “Act”) became effective on January 1, 2022. Arkansas is one (1) of five (5) states, including Colorado, Kansas, Utah, and Washington, that has enacted the Uniform Fiduciary Income and Principal Act. Legislation is currently pending in…
Certain Trust Expenses Still Deductible Until 2026
*This article was reviewed on May 31, 2024. The content remains current. The Tax Cuts and Jobs Act (TCJA), while lowering taxes for most, raised them for a few. One group of those few taxpayers for whom taxes went up under TCJA were certain trusts and estates (generally those with large investment…
Default Provisions in Arkansas's Uniform LLC Act – Now You Know
February 17, 2022
by David Biscoe Bingham
In previous blog posts (here and here) my colleagues have written about Arkansas’s adoption of the Uniform LLC Act (as adopted in Arkansas, the “Act”) and the new default duty of loyalty owed by the members and managers of the LLC to each other under the Act. Continuing in that vein, I would like…
Arkansas's Answer to the SALT Cap for Business Owners: The Arkansas Pass-Through Entity Tax Act
January 19, 2022
by Craig R. Cockrell
This article was corrected on March 2, 2022. The Tax Cuts and Jobs Act of 2017 (The “TCJA”) imposes a $10,000 cap on the amount an individual may deduct for federal tax purposes for the payment of state and local income, property and sales taxes (referred to as “SALT”). The IRS issued a Notice in…
Lessons from the Tax Court: Smaldino v. Commissioner
December 20, 2021
by Jennifer R. Pierce
A recent Tax Court case, Smaldino v. Commissioner, T.C. Memo. 2021-127, provides important lessons on gifting. The Tax Court found that Louis Smaldino understated the size of his gift to a trust set up for his children because he never effectively transferred a portion of the assets to his wife…