Amendments on the Procedure for
Estate Tax Settlement
Under current law, because we have a federal
estate tax, when someone dies, their basis in most items is "stepped up.
The federal
estate tax is owed by only about 1 out of 700 estates.
The bill also gives the following privileges to taxpayers who will avail the amnesty -
estate tax amnesty returns for 2016 and prior years will not be admissible as evidence in judicial, quasi-judicial, or administrative proceedings; books of accounts and other records of the taxpayers for the years covered by the amnesty will not be examined.
Although the New Jersey
estate tax was repealed, there are many who believe that its
estate tax repeal will itself be reversed by the next administration.
Assuming Irene dies with that $10 million a few years later, when the
estate tax exemption has risen to $6 million, her estate would be $4 million over the limit.
The District of Columbia and 19 states, however, do have either an
estate tax, an inheritance tax, or both (see table); if you have clients residing in those areas, then you still have some
estate tax planning to do.
High-profile Republican Senate candidates who campaigned to fully repeal the
estate tax included: George Allen in Virginia, Josh Mandel in Ohio, Dean Heller in Nevada, Ted Cruz in Texas, Deb Fischer in Nebraska, Rick Berg in North Dakota and Denny Rehberg in Montana.
households would have a potential
estate tax liability if the
estate tax law were to revert to the pre-2001
estate tax regime.
107-16) (the 2001 tax act) relating to the federal
estate tax.
Kyl is expected to offer an amendment to the yet released small-business bill that would reinstate the
estate tax at a 35 percent top rate with a $5 million exemption level.
There remains another complicating factor in
estate tax planning--one that is often overlooked by planners and their clients.
