August 07, 2014 Articles

Why Same-Sex Couples Will Be Moving to Florida (and Other Low Tax Cost States)

By Alan S. Gassman

Before the IRS issued Revenue Ruling 2013-17 in 2013, a same-sex couple would not receive full married couple benefits under the estate and gift tax laws unless they: (1) were married in a state that recognizes same-sex marriages, and (2) resided in a state that also recognizes same-sex marriages.

The above interpretation is based upon the Supreme Court's decision in United States v. Windsor, 133 S. Ct. 2675 (2013), as discussed in a July 30, 2013, newsletter article published by Steve Leimberg, entitled "Many Affluent Same-Sex Couples Will Be Leaving Florida and Where They Should Go." This piece was premised upon the court's decision to the effect that a same-sex couple would not be considered as married for tax purposes if the state where they resided did not recognize the marriage. That changed very quickly!

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