Sec. 6166 – Estate tax relief for family businesses

Description

Abstract: Now that the gift, estate and generation-skipping transfer (GST) tax exemptions have more than doubled to an inflation-adjusted $11.18 million for 2018, fewer people are subject to transfer taxes than ever before. But these taxes continue to place a burden on families with significant amounts of wealth tied up in illiquid closely held businesses. This article explains how Internal Revenue Code Section 6166 can provide relief. A sidebar discusses whether Sec. 6166 can be used with real estate businesses.