Tax News
The IRS has announced an increase in the optional standard mileage rate for the remainder of 2026. Optional standard mileage rates are used by employees, self-employed individuals, and other taxpayers...
The IRS has updated the applicable percentage table used to calculate an individual’s premium tax credit and required contribution percentage plan years beginning in calendar year 2027. The percenta...
Final regulations under Code Sec. 2056A have been adopted, applicable specifically to the estates of decedents that are passing property in a qualified domestic trust (QDOT) to (or for the benefit o...
The IRS has reminded businesses that seasonal and part-time employees must generally follow the same federal tax withholding, Social Security and Medicare tax rules as full-time employees. The agency ...
The IRS has advised newly married couples to update their tax information before the next tax filing season. The agency said marriage can change a couple's taxes, so taking a few simple steps now can ...
The IRS has reminded taxpayers that they have the right to question an IRS decision if they believe it is incorrect. This right is part of the Taxpayer Bill of Rights and helps make sure taxpayers a...
The National Taxpayer Advocate has released the Fiscal Year 2027 Objectives Report to Congress, concluding that the IRS generally conducted a successful 2026 filing season despite significant operatio...
The Washington Department of Revenue has reminded taxpayers that beginning with the 2026 tax year, they may prepay their capital gains tax up to six months before the regular filing and payment due da...
Contributions to Trump accounts will be treated as completed gifts that are not future interests in property and the gift tax annual exclusion amount will apply under a safe harbor for certain donors making contributions to Trump accounts created under Code Sec. 530A.
Contributions to Trump accounts will be treated as completed gifts that are not future interests in property and the gift tax annual exclusion amount will apply under a safe harbor for certain donors making contributions to Trump accounts created under Code Sec. 530A.
Pursuant to the rules of Code Sec. 530A, distributions from Trump accounts are limited during the growth period, which is the period ending on January 1 of the year in which the account beneficiary attains age 18. During the growth period, annual contributions are limited to $5,000 per year, as adjusted for inflation after 2027. Gifts of future interests in property are not eligible for the annual gift tax exclusion and must be reported on a federal gift tax return.
The safe harbor applies for a particular year if the following requirements of section 4.02 are met:
- The taxpayer is an individual;
- The only taxable gifts made by the taxpayer during the calendar year are cash contributions to one or more Trump accounts, each made before the calendar year in which the account beneficiary attains age 18;
- The taxpayer's total gifts during the calendar year to each individual who is an account beneficiary, including contributions to that individual beneficiary's Trump account, do not exceed the Code Sec. 2503(b) annual exclusion;
- Such contributions to Trump accounts during the calendar year do not generate for that year either a gift or generation-skipping transfer (GST) tax liability after application of the taxpayer's remaining applicable credit amount against the gift tax or remaining GST exemption; and
- Disregarding the Trump account contributions described in section 4.02(2) of the revenue procedure, a gift tax return is not required to be filed, and no gift tax return is otherwise filed for that calendar year by or on behalf of the taxpayer for any other purposes.
If these requirements are satisfied, each Trump account contribution made by the taxpayer during the calendar year will be treated as a completed gift to the account beneficiary that is not a future interest in property and to which the annual exclusion applies for purposes of gift and GST tax reporting. As a result, taxpayers within the scope of the safe harbor will not be required to file a gift tax return reporting the such contributions.