Estate and Trust Planning
Portability Election Reduces Estate Tax for 2011, 2012 Decedents
An important new provision in estate tax law may save you or your family from paying significant gift and estate taxes. To receive these benefits, you must file an estate tax return for the decedent, even if the estate is not otherwise required to file. Each individual has a basic exclusion amount, and that amount can be transferred free of federal gift and estate taxes. The basic exclusion amount in 2011 was $5 million and, adjusted for inflation, the 2012 basic exclusion amount is $5.12 million. Under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, individuals. Read More.
New Law Extends Tax Relief, Reinstates Estate & Gift Tax
Key Provisions of the Tax Relief Act of 2010 Incentives for Individuals Federal Estate & Gift Taxes Incentives for Businesses On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 , or H.R. 4853 (hereafter, “the Act”). The bipartisan legislation extends for two additional years many of the so-called “Bush-era tax cuts” originally enacted under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Key provisions of the new law extend the individual and capital gains/dividend tax cuts for all taxpayers through 2012, enact a payroll tax cut for 2011, provide a two-year AMT patch, establish a top estate tax rate of 35 percent with an exclusion of $5. Read More.
What Can You Do Now to Lower Your Tax Burden Next Year?
The package of tax cuts enacted 10 years ago under the Bush Administration is scheduled to expire on December 31st this year. Although there is a tax extenders bill currently under consideration in Congress, any further action has been delayed until after next month’s mid-term elections. As CB&H’s Mark Burger told West Palm Beach’s CBS12 , there are measures individuals can take to prepare for a full sunset. “We’re talking about accelerating income, looking at converting traditional IRAs into Roth IRAs, electing to take the income in 2010 if we see 2011 and 2012 tax rates are higher, defer recognizing losses till 2011 or. Read More.
New Small Business Jobs Act Offers Numerous Tax Incentives
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.
Estate and Generation-Skipping Tax (GST) Repeal – What To Do in 2010
On January 1, 2010, and for the first time in almost 100 years, the United States Tax Code does NOT have a tax on the transfer of wealth at the death of an individual. However, there remains a gift tax on lifetime transfers in 2010 at a maximum rate of 35% (10% lower than in 2009). How Did This Happen? The Economic Growth and Tax Relief Reconciliation Act of 2001 (“the Act”) was signed into law by President Bush on June 7, 2001. The Act made many changes to the estate, gift and GST transfer tax system, gradually lowering tax. Read More.
Small Business Owners Begin to See Signs of Recovery
America’s small business owners are becoming more bullish on the economy. According to the Discover Small Business Watch , fewer small business owners feel the economy was getting worse and more are seeing signs of growth over the near term. The number of small business owners who think the economy is getting worse was down to 49 percent from 53 percent in November; while 24 percent of small business owners see the economy staying the same, up from 16 percent in November; 25 percent see the economy getting better, down from 28 percent in November; and 2 percent are not sure. 22 percent see. Read More.