Advice: All is not lost. For one thing, you can still realize estate-tax benefits with a private annuity. For another, you may be able to squeeze through a narrow window of opportunity for certain transactions.
Old rules: In a landmark ruling issued in the 1960s, the IRS allowed the gain from a private annuity to be taxed ratably over the annuitant’s life expectancy. (IRS Revenue Ruling 69-74) Thus, annuitants could spread out the tax over time. Now, the IRS has completely reversed itself.
New rules: Under proposed IRS rules, if you receive an annuity contract for property instead of cash, the amount realized is the annuity contract’s fair-market val...(register to read more)
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