Private Annuity Regs

Andrew M. Katzenstein, a partner in the Los Angeles office of Katten Muchin Rosenman LLP, reports: Changes proposed to regulations (Treasury Regulations Sections 1.72 and 1.1001-1(j)) governing the income taxation of private annuity sales substantially limit the ability to accomplish income tax savings using that technique. Estate tax advantages of private annuity sales remain, but must be reconsidered

Andrew M. Katzenstein, a partner in the Los Angeles office of Katten Muchin Rosenman LLP, reports:

Changes proposed to regulations (Treasury Regulations Sections 1.72 and 1.1001-1(j)) governing the income taxation of private annuity sales substantially limit the ability to accomplish income tax savings using that technique. Estate tax advantages of private annuity sales remain, but must be reconsidered in light of these changes.

Private annuity sales have been promoted lately

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