President Trump and Republican lawmakers recently unveiled a Blueprint for tax reform. Here’s a link to a story about this in U.S. News. Here’s a link to a deeper look at the proposal in the Atlantic. As I discussed in last week’s blog, there are many uncertainties in the plan and in the prospects for passage. But, this week I’ll examine three different families and the impact the repeal of the estate tax would have on them. I’ll assume in each instance that at the death of the first spouse, … [Read more...] about How Tax Reform Could Impact Various Families
President Obama recently gave his State of the Union address. In the address, he mentions at least two tax proposals which would substantially impact our clients and both involve the taxation of capital gains. Proposals First, the President proposes to move the top capital gains (and dividend) tax rate to 28%. For those with only earned income, like wages and salary, this would have no impact. However, for those with substantial unearned income like dividends or gains on the sale of capital … [Read more...] about Could Capital Gains Taxation Change?
In recent years, uncertainty has been the name of the game when it comes to tax planning. This year is no different. The Bush tax cuts are set to expire on December 31, which means that absent intervention by Congress: Tax rates for ordinary taxable income will increase, with taxpayers in the highest bracket paying 39.6% The number of taxpayers subject to the Alternative Minimum Tax will expand significantly Maximum long-term capital gains rates will increase from 15% to 20% Stock … [Read more...] about Helping Your Clients Overcome Tax Planning Paralysis
Last week, I discussed how the transfer of real estate into a trust could trigger issues regarding Homeowner’s Insurance and Title Insurance. There are many other issues to consider. This week, I’ll look at tax and asset protection considerations. Taxes Capital Gains Tax: Transferring a residence to a grantor trust (like a revocable trust) does not interfere with the grantor’s $250,000 (or $500,000 for joint returns) capital gains exclusion, provided the property otherwise … [Read more...] about To Fund or Not to Fund: What to Know Before Transferring Real Estate to a Trust (Part Two of Three)
The last couple of years have brought the topic of the federal estate tax to the forefront like never before. Not only has there been debate over what Congress should do. The polarizing subject of the fundamental fairness of the tax itself has also taken center stage. Here are some reasons in support of the fairness of the estate tax: The estate tax is the fairest method for reducing the deficit. Why? Not necessarily because it taxes those most able to pay, but because it taxes those least … [Read more...] about The Fairness of the Estate Tax