After The Georgia Runoff What Tax Planning Should You Do NOW?

With the results of the Georgia runoff election in the Democrats Control the House, the Senate and the White House. So, the potential for harsh tax legislation increasing taxation of the wealthy, along the lines of prior Democratic proposals, might be likely to happen. What might those changes be? When might they be effective? What planning might you want to do now? https://www.forbes.com/sites/martinshenkman/2021/01/10/after-the-georgia-runoff-what-tax-planning-should-you-do-now/?sh=3106915169ea

Estate Tax Planning and the Often-Overlooked Power of the “Med-Ed Exclusion”

The current federal gift and estate tax rate is 40% and once an individual uses his or her lifetime exemption (currently $11.58 million and scheduled to drop to about half of that in 2026, perhaps sooner in light of election results) tax planning becomes difficult and complex. The only simple solutions are making charitable gifts and using the annual gift tax exclusion that allows an individual to make gifts of $15,000 per year to as many people as desired, provided … Continued

Now’s The Time To Take Advantage Of Transferring Or Selling Assets

  The clock’s ticking for wealthy clients looking to find tax advantages when transferring assets to the next generation or selling their business—especially considering the looming, potentially watershed election. “With a possible administration change and proposed changes to the capital gains rate, it might be wise to complete the transfer prior to year’s end,” said Julia Carlson, CEO and founder of Oregon-based Financial Freedom Wealth Management Group. Democratic candidate Joe Biden’s tax plans include bumps in the top tax rate … Continued

2019 Estate and Gift Tax

The IRS has published new guidelines relating to estate and gift tax changes for 2019. Starting this year, estates of decedents who die during 2019 have a basic estate tax exemption amount of $11,400,000 (increased from $11,180,000 in 2018). This means that the estate of a person dying in 2019 with more than $11.4 million in assets may pay a federal estate tax (on assets which do not pass to charity or to a surviving spouse). Over both deaths of … Continued

Sitting on $11 million? Give it away to save on estate taxes

  If the holiday spirit is encouraging you to gift millions of dollars to family members, it’s time to start sharing the wealth. The Tax Cuts and Jobs Act increased the gift and estate tax exemption — also known as the basic exclusion amount — to $11.18 million per person in 2018, which is more than double the amount under the old law. That means any individual can transfer up to $11.18 million, either as gifts during their lifetime or … Continued