Estate tax free amount to be $5M under President Obama’s 2013 budget, contrasted with the Republican’s proposed repeal of estate tax. (See post from 2/13.) Only time will tell…. Copyright 2012 Phillips Law Offices, A Professional Corporation
H.R.1259 – This bipartisan House bill would permanently repeal the federal estate tax, repeal the federal generation-skipping transfer tax, and extend the $5.12 million lifetime gift tax exemption and 35% gift tax rate. Currently the bill has approximately 194 co-sponsors. Of course, only time will tell what will happen in this election year.
Congressman Jim McDermott (D-WA) just introduced HR 3467 the “Sensible Estate Tax Act of 2011,” which would reduce the estate tax exemption to $1,000,000 for taxpayers who die after this year. The $1M exemption would be indexed for inflation, with a 55% top tax rate. This bill appeared “dead on arrival.” But for details on … Continue reading House Bill Introduced to Reduce Estate Tax Exemption to $1,000,000
2010 2011 2012 2013 Estate Tax Exemption amount * $5.0 million $5.0 million $5,120,000 $1.0 million Tax rate Flat (35%) Flat (35%) Flat (35%) Progressive (up to 55%) Elections Can elect out of estate tax, but §1022 carryover basis will apply ($1.3 million “free-basis” + $3.0 million spousal bonus) Can elect to add “deceased spousal … Continue reading New Estate Tax Exemptions, Gift Tax Exemptions, Generations Skipping Transfer Tax Exemptions for 2012 and Beyond
Thanx to the December 16, 2010 federal tax legislation, married couples now get a simple, non-trust “two for one” estate tax exemption, doubling up the amount that a surviving spouse can leave without estate tax. The concept is called “portability” of unused estate tax exemption, and it has never existed before. It has enormous, positive … Continue reading New, portability of unused estate tax exemption for married couples offers simple “2 for 1” plans.