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You should consult your tax adviser to determine what impact, if any, these allocations may have on your tax situation for the current tax year or in future years. The Administration’s proposal hasn’t yet been formalized in the detailed language of a bill to be introduced in Congress. If you have questions, please consult your tax advisor for further guidance. Former Unitholders of Plum Creek Timber Company, L. The eligible shareholder includes 125 per cent of the dividend received in income for tax purposes to represent the before-tax income earned in the corporation. If this occurs, some of the estate planning techniques that top executives have used – for example, benefit swaps – would disappear. In Canada, corporate income is subject to federal and provincial corporate income taxes. The economic stimulus package would repeal the estate tax permanently. Leaving those considerations aside, here is a very simple illustration of how the proposal might work.
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