Taxation
Ca. Tax Lawyer 2016, VOLUME 25, NUMBER 2
Content
- 2016 Sacramento Delegation
- Bar Business Taxation Section Overview
- Contents
- Masthead
- Message from the Chair
- Problems Regarding Recently Enacted Provisions Relating to the Portability of a Deceased Spouse's Unused (Unified Gift/Estate Tax) Exemption ("Dsue") and Proposed Solutions to Those Problems
- Proposal to Amend Revenue and Taxation Code Section 19035 to Mandate That the Franchise Tax Board Provide All Notices Relating to Joint Tax Returns to Each Joint Filer
- Simplified Return Filing and Tax Payments for Partnership and Limited Liability Company Conversions
- Taxation Section 2015-2016 Leadership Directory
- Visiting the Committees
- Proposal to Clarify Portion Rules That Determine When a Power Holder Other Than the Grantor Is Treated as the Owner of Trust Income
Proposal to Clarify Portion Rules That Determine When a Power Holder Other Than the Grantor Is Treated as the Owner of Trust Income1
By Robert Denham2
FIRST IMPRESSIONS, SECOND THOUGHTS
It is said that no battle plan survives contact with the enemy. This paper had been intended to explain that certain tax-driven formula withdrawal powers should not be permitted to determine ownership of trust income, but that other economic withdrawal powers should be respected. The draft paper analogized the formula withdrawal powers to income ordering rules for charitable lead trusts that are prohibited by regulation. In light of comments received in response to the draft, it now appears that such tax-driven formula withdrawal powers might actually work because they are sufficiently similar to the alternative economic powers and different from those income-ordering rules. Who says you never get a second chance to make a first impression?