Prepare for estate and gift tax changes — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Prepare for estate and gift tax changes

Get PDF file

by on
in Small Business Tax,Small Business Tax Deduction Strategies

It's unlikely the one-year estate tax repeal in 2010 will occur. Proposed legislation retains the $3.5 million estate tax exemption and top 45% rate. It also reunifies the estate and gift tax exemptions and allows a surviving spouse to use a deceased spouse's unused exemption.

The Obama administration has proposed a change in estate and gift tax valuations for the same asset. Currently, you may use a high valuation for gift tax purposes but a lower value for inherited assets. Net effect: Income tax is reduced when the asset is later sold, due to basis adjustment. Under the new Obama proposal, the same value must be used for both purposes.


Leave a Comment

Previous post:

Next post: