Reply To: QCD and estate tax deduction

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#4966
wanttoknow
Participant

Thanks, Alan.

But there has been a misunderstanding. $875,849 is the amount of original IRD, not the original estate tax deduction.

The original estate tax deduction was $381,060, and $316,026 of that has already been included in itemized deductions over the past 15 years. (The fact that $316,026 doesn’t equal 15 x $23,228 is due to a couple of minor glitches, including no RMD in 2009.)

The remaining $65,034, according to my normal method, would be deducted: $23,228 2019, $23,228 2020, $18,578 2021—when the IRA will be exhausted.

However, it might be advantageous to accelerate the remaining deductions. Since you suggested increasing from $23,228 per year through 2015 to $95,000 per year from 2016, I’m thinking that even the most extreme acceleration—all of the remaining $65,034 deducted this year—would be possible, but with the associated risk that any disallowed excess might not be recoverable in 2020-21.

Yes, the $381,060 original estate tax deduction was calculated as you describe.

  • This reply was modified 1 year, 9 months ago by wanttoknow.