At the recent Baker Hostetler conference, Rep. Dave Camp of Michigan, the ranking Republican on the House Ways and Means Committee and the heavy favorite to become chairman of the committee if Republicans capture control of the House in November, mentioned the possibility of allowing estates to choose this year’s law or the 2009 version. This idea stems largely from fears of a court challenge if Congress brings back the 2009 law and makes it retroactive to Jan. 1, 2010. Such a court challenge could take many years to resolve.
Friday, May 28, 2010
Friday, May 21, 2010
Proposed estate tax: pay now, die later
via blogs.wsj.com
Would a prepayment option work? Probably not for everyone. It would be great for people with liquid assets who can easily pay the taxes on the assets they put into the prepayment trust. However, for small-business owners and family farm owners with illiquid assets, the benefits would not be as apparent. We will have to wait and see if this proposal gets off of the ground.
Estate tax deal falls apart
via examiner.com
One commentator's thoughts..."My personal opinion remains that we’re not likely to see any estate tax legislation before the November elections, and that retroactive legislation is less likely with each passing day."
Wednesday, May 19, 2010
Estate Tax Could Come Back in 2011 With Sharp Bite
via forbes.com
The reinstatement of the estate tax at 2001 exemption levels plus greater restrictions on GRATs or family partnerships--or both--could spell problems for wealthy taxpayers in 2011.
Tuesday, May 18, 2010
US Senate effort to reduce estate tax hits turbulence
via nasdaq.com
Further commentary regarding the fallout between Senate Democrats and Republicans over the stalled plan to address the estate tax. It seems the parties are further apart than originally thought. "There's no agreement on estate tax, neither on substance nor on process. None whatsoever," said Senate Finance Committee Chairman Max Baucus (D., Mont.).
How to protect your family from estate tax uncertainty
via forbes.com
The 2010 repeal of the Federal estate tax and the tax's potential retroactive reinstatement have caused several families to fall into estate limbo. This article provides an excellent summary of steps you can take today to help protect your heirs and assets during this time of uncertainty.
Senate Minority Whip Jon Kyl: Senate deal off on estate tax
via thehill.com
It seems the estate tax proposal forged last week between Senate Democrats and Republicans has fallen apart. Though the proposals details were not disclosed, sources say that lawmakers were looking to give taxpayers the option of prepaying their estate tax. The levy would be set at 35 percent for those worth more than $3.5 million. However, the exemption would ultimately increase over time to $5 million and wouldn't be indexed for inflation. Prepayment trusts would pay a lower rate. Stay tuned as this matter continues to churn in Washington.
Monday, May 17, 2010
Senators seek venture capitalist waiver from fund tax
via businessweek.com
A group of five Senators has urged Senate Finance Committee Chairman Max Baucus to back off a proposed higher tax rate on carried interest. Carried interest is the profit share paid to managing partners of VC firms as part of their pay. That share, which lawmakers say is payment for services, currently can qualify for long-term capital gains rates of 15 percent. In a May 11 letter to Baucus and Iowa Senator Chuck Grassley, the lawmakers wrote, "We encourage you to include language in any carried interest provision that maintains a capital gains incentive for those who contribute to the viability of our start-up community - venture capitalists."
Friday, May 14, 2010
Sen. Lincoln pushes estate tax fix for small businesses
via thehill.com
Sources close to the matter have recently said that the levy would be set at 35 percent for those worth more than $3.5 million; however, the exemption would ultimately increase over time to $5 million and would be indexed for inflation. Prepayment trusts would pay a lower rate.
Tuesday, May 11, 2010
Senate Minority Whip Jon Kyl: Deal on the estate tax in the offing
via thehill.com
According to Senate Minority Whip Jon Kyl (R-Ariz.), his estate tax proposal is near completion. It is speculated that the plan will include an estate tax prepayment option. Kyl said the fate of his estate tax bill would likely be tied to legislation aiding small businesses that is being created by Senate Finance Chairman Max Baucus (D-Mont.).
Talks advance on estate tax
via thehill.com
As talks among lawmakers advance, one interesting proposal has surfaced - an estate tax prepayment option. If taxpayers choose to this option, payments would be at a lower tax rate than if made after death.
Monday, May 10, 2010
Billionaire’s Heirs First to Win 2010 Estate Tax Jackpot
The death of Dan Duncan, the world's 74th richest person, at a time when the Federal estate tax has been repealed may end up costing the U.S. Treasury nearly $4 billion in lost estate tax revenue.
Some quirky tax breaks that aren't going away
via online.wsj.com
The House of Representatives recently passed a tax exemption for employer-provided cellphones and smartphones. Assuming the bill becomes law, it will join several other quirky tax breaks that have survived the chopping block. Among those is the so-called "Masters exemption" which allows homeowners who rent out their property for 14 or fewer days a year to pocket the income tax-free. As you can imagine, this has provided a hefty windfall for those homeowners near the Augusta National Golf Club.
Thursday, May 6, 2010
How to protect your family from estate tax uncertainty
via forbes.com
The 2010 repeal of the Federal estate tax and the tax's potential retroactive reinstatement have caused several families to fall into estate limbo. This article provides an excellent summary of steps you can take today to help protect your heirs and assets during this time of uncertainty.
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