subject: Tax Law Changes Create Planning Opportunities [print this page] As real estate taxes can affect your family? In 2008, the Dow was up 33.8%, the S & P 500 declined by 38.5% and the Nasdaq fell more than 40%. It was a bad year. Imagine the impact of losses in the last year in just one day. With federal funds real estate tax rates were 37% to 45%, losing your family more in a single day than during the storm we weathered in all of 2008. Proper planning is essential, and the current economic environment and recent changes in the law provide someenormous opportunities to minimize taxes.
Estate and GST tax applicable exclusion amount to $ 3.5 million
On 1 January 2009 has increased the applicable exclusion amount for federal and property tax generation-skipping transfer taxes of $ 2 million to $ 3.5 million. The maximum federal property tax remains at 45%.
With little sign of economic improvement of the combination shows reduced by lower asset values,Interest rates and the prospect of an inheritance and gift tax will lead a unique opportunity for the estate planning techniques that can be significant tax savings. Many commentators say that Congress will pass a property tax reform in 2009, although some benefit may constitute a major burden for others. Now is the time to respond to the tax planning techniques that are still available and very effective capital under current economicTerms.
Family Limited Partnership Discounts
It has introduced new legislation in Congress to the discounts that may for a partnership to eliminate gifts of assets. Plans in such an undertaking should be implemented or help as soon as possible to ensure that gifts will continue to be maintained, "" under the existing laws to be reviewed.
Annual increase in gift tax exclusion of up to $ 13,000
The annual gift tax exclusion, with which aAmount donors can give certain individuals and trusts each year has increased from $ 12,000 to $ 13,000. The annual gift tax exclusion gives individuals the opportunity to transfer assets without reducing the size of the taxable property that tax liability. The increase in funding, lower asset values, which are linked from the current economy, provide a unique opportunity to bring the benefits of to maximize tax-free gifts.
