On the campaign trail, President Trump promised to repeal the estate tax aka death tax. That plan failed. But the new tax law, effective since the beginning of the year, significantly reduces the number of estates that will need to pay the tax. It doubles the exemption limit for the estate, gift and generation-skipping taxes set for 2017. Portability remains in effect, as does the marginal estate tax rate of 40 […]
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Posts Tagged ‘gift tax exclusion’
The IRS recently announced the estate and gift tax exemption for 2016; it has been set at $5.45 million for individuals and $10.9 million for couples. (The estate tax exemptions for the current tax year are $5.43 million and $10.86 million respectively. The slight rise reflects the very low inflation rate for 2015.) With a limit of $14,000 per gift, the annual gift tax exclusion will remain the same. So should […]
Read MoreLet’s start with a hypothetical scenario: 2014 was a good year for you, and with gas prices dropping ever lower you’ve decided to replace your energy efficient hybrid car with another, more luxurious model. Your only grandson, who is paying off college debt, drives a gas guzzling SUV. To help him save money you give him the hybrid, a 2011 model which the Kelley Blue Book values at $16,000. Next […]
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