Thanks to the Internal Revenue Service\u2019s release of Rev.\nProc. 2022-32, married couples who are not otherwise required to file an estate\ntax return at the death of the first spouse now have substantially more time to\nmake a portability election, permitting the transfer of the deceased spouse\u2019s\nunused federal estate tax exemption to the surviving spouse.<\/p>\n\n\n\n
The Importance of Portability<\/strong><\/p>\n\n\n\n Currently,\neach individual has a federal gift tax and estate tax exemption amount of\n$12,060,000 (in 2022). Any exemption amount not used for lifetime gifts remains\navailable at death to offset federal estate taxes on the individual\u2019s taxable\nestate. Amounts left to a surviving spouse typically do not require the use of\na decedent\u2019s remaining basic exemption amount because they qualify for the\nestate tax marital deduction. <\/p>\n\n\n\n Any estate representative wanting to make a portability\nelection for a deceased spouse\u2019s estate must file a federal estate tax return,\nregardless of whether a return would otherwise be due.<\/p>\n\n\n\n Under\nRev. Proc. 2022-32, estates filing estate tax returns solely to make the\nportability election (a portability-only return) have far more time to file\ntheir returns. A portability-only return may now be filed anytime on or before\nthe 5th anniversary of the decedent\u2019s death<\/strong>. The return must follow the\nsimplified method for obtaining the extension as detailed in Rev. Proc.\n2022-32, including a statement that the return is being \u201cFiled Pursuant to Rev.\nProc. 2022-32 to Elect Portability under Section 2010(c)(5)(A).\u201d<\/p>\n\n\n\n This\nextended filing deadline is helpful because many estate representatives may not\nunderstand the need to file a portability-only return or may not discover the\nneed to elect portability for a surviving spouse until after the federal estate\ntax return due date. <\/p>\n\n\n\n The new extended deadline for filing a\nportability-only return also should provide welcome relief to advisors and\nexecutors of eligible estates, who now have a greater opportunity to make the\nelection, if advantageous. As always, however, it is\nimportant for married couples to seek guidance from their estate planning\nattorney to determine what tax planning techniques are best suited to their particular\nneeds.<\/p>\n","protected":false},"excerpt":{"rendered":" Thanks to the Internal Revenue Service\u2019s release of Rev. Proc. 2022-32, married couples who are not otherwise required to file an estate tax return at the death of the first spouse now have substantially more time to make a portability election, permitting the transfer of the deceased spouse\u2019s unused federal estate tax exemption to the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"1","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4394","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=4394"}],"version-history":[{"count":1,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4394\/revisions"}],"predecessor-version":[{"id":4395,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4394\/revisions\/4395"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=4394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=4394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=4394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}