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Use Trusts for Pass-Through Tax Break? Yes, You Still Can

Aug. 10, 2018, 3:53 PM

Taxpayers could still use multiple trusts to exploit a tax break for pass-through businesses under newly proposed IRS rules, because the rules’ trust restrictions apply only if the trusts have the same beneficiary.

Multiple trusts would still work as long as there are different beneficiaries of each trust. “And that’s the right answer, because they are separate in reality” for tax purposes, said Don Kozusko, a partner at Kozusko Harris Vetter Wareh Duncan LLP in Washington.

The limitation on use of multiple trusts is an anti-abuse provision that the Internal Revenue Service included in Aug. 8 proposed regulations...

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