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

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

How the new tax law could impact donors’ philanthropic strategies – Smart Business Magazine

  The 2017 Tax Act, passed into law in December, is one of the most complicated new laws in tax history. In addition to changes that affect individuals and businesses, there are also noteworthy changes that will impact charitable giving. Smart Business spoke with Karen S. Cohen, CPA, vice president and trust officer at Home Savings Bank, about how the new law is expected to impact charitable giving. How is the act’s passage affecting charitable giving and planning? In 2018, … Continued

MAKING CENTS: Gifts – beware unintended consequences – News – Dover Post – Dover, DE

  Many taxpayers want to make gifts of assets to their children or grandchildren while they are alive. Seeing their hard work benefit someone they love is extremely gratifying for many. Unfortunately, most taxpayers are relatively unsophisticated in both income and estate tax laws, and the unintended consequences of gifts done improperly could cost your beneficiaries dearly. To make matters worse, do not assume your attorney is aware of these laws either. We have witnessed many gifts promulgated by a … Continued

IRS Raises Limit On Tax-Free Lifetime Gifts – Forbes

  As many estate planners anticipated, the Internal Revenue Service has raised the limit on tax-free transfers during life or at death. Starting in 2014 that amount, known as the basic exclusion, will go up to $5.34 million per person, from $5.25 million this year. Today’s announcement, in Revenue Procedure 2013-35, indicates that there will be no change in the annual exclusion, which allows you to give $14,000 in cash or other assets each year to each of as many … Continued