July 1, 2022, 4:31 PM
The IRS’s new proposed estate-tax rules would dull the financial benefits of certain loans that estates take out to cover their tax liabilities without needing to sell off illiquid assets.
The long-in-the-works proposal, published June 28, offers guidance on a variety of issues under tax code Section 2053, which allows for deductions on estate-tax returns for funeral expenses, administration expenses, claims against an estate, and debts related to certain property.
Tax attorneys especially took note of the section of the proposed rules focused on estates seeking to deduct the interest on loans taken out to help …
