Thought You’d Like to Know
As you may know from the public media, President Barack Obama and Select Members of Congress struck an agreement regarding various forms of taxation. The recommendations of the group now go to Congress for consideration and possible enactment into law. The Wall Street Journal reports that if Congress acts affirmatively and the President signs the bill Congress passes, most of the following tax laws will be in effect for the next two years.
- The first $5,000,000 of property will be exempt from estate taxation.
- The top estate tax rate will be 35% down from 55%.
Current Law remains in effect. You can give up to $13,000 per donee using the “Annual Exclusion,” plus you have a “Lifetime Exemption” of up to $1,000,000. Gifts of the “Annual Exclusion” amounts will not be subject to Estate Taxation at your passing. Plus, increases in value of “Annual Exclusion” property will escape Estate Taxation. On the other hand, gifts using the $1,000,000 Lifetime Exemption are subject to Estate Taxation at your passing, however, as with Annual Exclusion gifts, increases in value of Lifetime Exemption property will escape Estate Taxation at your passing.
Employees’ share of Payroll Tax is reduced from 6.2% to 4.2%
Extension of credit for college students to offset tuition costs granted.
Some 22 million families are exempted from the Alternative Minimum tax.
Expansion of $1,000 Child-Tax Credit to more families.
Up to 100% expensing of business investments, including plants and equipment will be possible.
There will be an extension of Credits for Research and Development.
For Unemployed Workers, there is an unemployment benefit package.
As you know, our office concentrates its practice in the fields of estate and gift tax planning and implementation, income tax law, business law, trust law, probate law, as well as other laws.
Once the above laws are enacted, we plan to hold several Free Seminars and there explain the new laws to those interested in knowing how to save taxes as they proceed with their daily lives.
We plan to invite only 16 to each seminar, so everyone attending can ask questions and learn how to plan their lives to take full advantage of all of the new laws.
These new laws come to us as hoped for remedies for the vestiges of the recession our country is experiencing. We need to take full advantage of them and do our part, not only for our personal benefit, but also for the benefit of our Country.
We hope to see many of you at our Seminars. They will fly under the banner of Legal Ease (Law Made Easy). And we will try to do just that and make our comments understandable and useful.
We will be in touch again soon.
Charles and Bev