For those of you in Rio Linda, married couples get an unlimited deduction in which they can transfer during life or at death as much of their estate as they like to the other spouse without incurring federal estate tax. The idea being that the receiveng spouse will be taxed on the property transferred at their death.
This is a great planning tool for the gay community if the service goes for it, but it is open to all kinds of fraud and misuse. This could be interesting? Popcorn anyone?
Uh, yeah. In fact, you'd have to be an idiot not to take advantage of this new loophole. I imagine all kinds of business partners and others will get "married" so they can keep their own money rather than throw it down the government toilet. Why not?
The IRS does not recognize gay marriages for federal tax purposes. A gay married couple from Massachuesets cannot file a “Married Joint” or “Married Seperate” federal tax return. So there will be no effect at all.
The IRS being a federal agency doesn’t have to recognize the marriages as such. Of course there will be a big fight on the federal level whether or not such marriages will be recognized in all fifty states due to the ‘faith and credit” clause of the constitution. The IRS tends to win many of the big battles....
“I wonder how the IRS is going to treat “married” homosexuals for purposes of the unlimited marital deduction? “
There is no box for “gender” on the form, and all the data personnel do is enter the names.. as they appear.. and the filing status.. there have been several times in the past where the first names on a “married filing jointly” form have been traditional male names.. I”m sure there will be more in the future now.