In a previous article (“Tax Implications Resulting from Demise of the Defense of Marriage Act (DOMA)”; August 15, 2013) I explained that the Treasury Department issued a revenue ruling that permits legally married same-sex couples to file a joint federal tax return and utilize the unlimited martial deduction for estate tax purposes and other provisions of the estate and gift tax laws if the state in which they resided sanctioned such unions. If they moved to a state that does not recognize same-sex marriages, they would not be allowed to utilize these provisions.

New Revenue Ruling

On August 29, the Treasury Department issued a new revenue ruling [Rev Rul 2013-17] expanding the previous one. The new ruling will now allow legally same-sex married couples to file a joint return and utilize the unlimited martial deduction for estate tax purposes and other provisions of the estate and gift tax laws even if they move to a state that does not sanction same-sex marriage. In his statement announcing the new ruling, Treasury Secretary, Jacob B. Lew, stated: “today’s ruling provides certainty and clear, coherent tax-filing standards for all same-sex married couples nationwide. This ruling also assures all legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change.” Read More