SCHEY, PILLER, ALSPAUGH & WONG, P.C.
Attorneys at Law

ANNUAL GIFT TAX EXCLUSION

The Internal Revenue Service has announced that the annual gift tax exclusion increased as of January 1, 2009 from $12,000 to $13,000.

ESTATE TAX APPLICABLE CREDIT AND EXCLUSION AMOUNTS FOR 2009

The estate tax applicable exclusion for decedents dying in 2009 has been increased to $3,500,000 per person from $2,000,000 from 2008.

TAX INCENTIVES FOR WATER STOCK

Enhanced Like-Kind Exchanges

P.L.110-234 amends the like-kind exchange rules under Code Sec. 1031 to permit the exchange of water rights in the form of mutal ditch, reservoir and irrigation company stock. The new like-kind exchange treatment would apply to exchanges completed after the date of enactment.

IMPACT This provision creates an exception to the general rule that stock is not property for like-kind exchange treatment and could open the door to future changes to the strick like-kind exchange rules. For the time being, however, this provision narrowly applies to certain stock representing a holding of water rights that is recognized as real property under state law.

(from the CCH Tax Briefing: Farm/Military Tax Relief Acts of 2008 May 27, 2008 Speical Report: 2008 CCH)

Phillip S. Wong

Admitted: 1977, Colorado

Phillip S. Wong was raised in Albert Lea, Minnesota before coming to Colorado for college. He earned both his B.A. in Economics and his law degree from the University of Colorado. Phil is also a licensed securities broker. Phil began his private law practice with Schey & Schey, P.C. in 1977 and is a partner and officer in the firm.

Phil’s practice focuses on business organization and consulting, commercial transactions, real estate development and transactions, wills, trusts, estate planning and administration; charitable foundations and water law.

For More Information Contact:

SCHEY, PILLER, ALSPAUGH & WONG, P.C.
636 Coffman Street, Suite 200
P. O. Box 267
Longmont, CO 80502-0267
Tel: 303-776-3511
FAX: 303-772-2297
Email Phillip S. Wong

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ISSUES AND ANSWERS:

QUESTION: If I am injured in an automobile accident, how much time do I have to begin a Lawsuit against the resposible party?

ANSWER: A person has to initiate a lawsuit against the party responsible for the injuries not later than three years from the date of the accident. Suit cannot be brought If that deadline is missed. Also, if a person suffers injuries in the accident which result in death, the deadline is shortened to two years.