The Beggs & Lane Blog

by Terrie Didier, Esq. 2/26/2019 QUESTION: What are my rights if an insurer refuses to provide me residential property insurance due to adverse underwriting information? ANSWER: By statute, the insurer must provide the applicant specific information regarding the reasons for the refusal to insure. If the reason for the refusal to insure is based on a loss underwriting history, the insurer must identify the applicable loss underwriting history. If the reason for the refusal to insure is based on a report from a consumer reporting agency, the insurer must notify the applicant of his or her right under the federal [...]

The Fifth Circuit Court of Appeals recently held that the Tax Court’s ruling upholding an IRS Appeals Board decision to deny a face-to-face hearing before enforcing levies against a taxpayer was not an abuse of the Tax Court’s discretion. In Muir v. Commissioner, No. 18-60336 (5th Cir. Feb 15, 2019), Muir failed to pay income taxes, for which the IRS issued an unchallenged Notice of Deficiency. Later, the IRS sent Muir a Notice of Intent to Levy. See 26 U.S.C. § 6330(a)(requiring IRS to provide notice). In response to the notice, Muir requested a hearing to raise an alternative to [...]

In its opinion in Bitetzakis v. Bitetzakis, Case No. 2D17-4822 (Fla. 2d DCA Feb 1. 2019), Florida’s Second District Court of Appeal recently held that an individual signing a will must strictly comply with the signature requirements of section 732.502, Florida Statutes, for the will to be recognized as valid and admitted to probate.  The court’s ruling emphasizes the importance of properly executing a will in accordance with Florida law. Section 732.502, Florida Statutes, provides that every will must be in writing and executed in a specific manner. First, the testator (the person making the will) must either (a) sign [...]

  The Tax Cuts and Jobs Act (“TCJA”), made changes to Internal Revenue Code Section 529. Section 529 created so called “529 Plans” or “qualified tuition plans” for taxpayers to shield growth in college savings from further income taxes. However, the old Section 529 did not allow for private elementary or secondary school expenses to be paid from the 529 Plans. Under the TCJA changes, up to $10,000 per year can be withdrawn tax-free from § 529 accounts to pay it. Section 11032 of the TCJA, amended Code § 529(c) by adding § 529(c)(7), which permits tax-free distributions from § [...]

Under the Tax Cuts and Jobs Act (“TCJA”), a provision was enacted to spur economic development and job creation in distressed communities. Under Section 1400Z a taxpayer may elect to defer gain from the sale or exchange of any property to or with an unrelated person before December 31, 2026 to the extent such gain is reinvested in a “qualified opportunity fund” within 180 days after the sale or exchange. The new provisions require an electing taxpayer include such deferred gain in income upon the earlier of December 31, 2026 or the sale or exchange of the investment. IRC § [...]

Under the Tax Cuts and Jobs Act (“TCJA”), a taxpayer holding an “applicable partnership interest” is required to recalculate any net long-term capital gain realized “with respect to” the “applicable partnership interest” by applying a three-year holding period (instead of the standard one-year holding period). Internal Revenue Code (“IRC”) § 1061(a). If such calculation results in a lower amount of net long-term capital gain than the amount of net long-term capital gain realized utilizing the standard one-year holding period, the rule recharacterizes such difference as short-term capital gain. IRC § 1061(a) (flush language). Section 1061(a)(2) requires a taxpayer to recalculate [...]