November 2018

November 2018

IRS Issues Guidance for Several Tax Cuts & Jobs Act Provisions

Proposed IRS Rule Would Prevent Gift & Estate Tax "Clawback"

On November 20, 2018, IRS issued a proposed rule providing that individuals who make gifts while the basic exclusion amount (BEA) is temporarily doubled will get to take full advantage of that increased BEA for those gifts, even if the BEA is lower at the time the donor dies. In other words, the proposed regulations would eliminate a so-called “clawback.” The regulations would be effective after publication of a Treasury decision adopting them as final.

Continue reading here.

Final Regulations Issued for Head of Household Due Diligence Requirements

On November 7, 2018, Treasury issued final regulations to implement new due diligence requirements applying to tax return preparers making head of household eligibility determinations for their clients. The final regulations largely track the proposed regulations, which were issued July 18. They do clarify, however, that a preparer cannot rely on pre-existing knowledge acquired outside of a tax preparation engagement to meet the due diligence requirement. The regulations also affirm the importance of contemporaneous documentation.

Continue reading here.

IRS Issues Proposed Reliance Regs for New Business Interest Deduction Limitation

On November 26, 2018, IRS released 439 pages of proposed regulations, REG-106089-18, to apply the IRS § 163(j) business interest deduction limitation enacted by the Tax Cuts & Jobs Act. Taxpayers may rely upon the proposed regulations until final regulations issue.

Continue reading here.

Details Matter When it Comes to Security Interest Priority

A recent case from the Iowa Court of Appeals assesses the impact of a below-market-value purchase on the priority of related security interests in farm equipment. It’s a timely review during this current farm downturn.

A private lender made loans to a farmer and his business entities for the purpose of financing his farming operation. The parties executed security agreements for the transactions to secure all present and future debts owed to the lender. The lender had a blanket security interest in all farm-related property, perfected by the filing of financing statements with the Iowa Secretary of State’s office.

After the lender’s death, the personal representative of his estate filed a petition for replevin against the farmer, his son, and his farming entity seeking possession of all secured property. The district court issued the writ of replevin for some property, but did not grant the writ with respect to two tractors that the farmer had sold to his son. The district court ruled that the son acquired the tractors free of the lender’s security interest because of an “implied course of dealing” between the farmer and the lender that allowed the farmer to sell collateral in which the lender had a security interest without seeking his permission.

Continue reading here.


Donate to CALT

As you know, our work at the Center is dependent on the fees generated by seminar registrations and gifts. If you would like to donate to further the Center's efforts, please contact our Program Administrator, Micki Nelson at or (515) 294-5217. You can also give online with a credit card. We thank you for your generous support.

CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

RSS​ Facebook Twitter