1031-Tax Deferred Exchange
HISTORY
This controversy of the estate tax issue dates back to Bush's first tax cut in 2001 that phased down the tax from 55% down to zero in 2010. Although that 10-year tax law was to expire in 2011, the expectation was that once the estate tax was gone for even one year, it would never return or at the very least Congress would extend the 2009 terms.
In 2009, the first $3.5 million of an estate generally was excluded from federal taxes with a top tax rate of 45%. The federal estate tax was scheduled to temporarily disappear in 2010, before returning in 2011 at an even higher 55% rate. During 2010 without an estate tax, all estates over $1.3 million would be subject to a 15% capital gains tax. Law makers are attempting to change that along with the 2010 inheritance tax rate, and are discussing making laws retroactive to January 1, 2010.
This controversy of the estate tax issue dates back to Bush's first tax cut in 2001 that phased down the tax from 55% down to zero in 2010. Although that 10-year tax law was to expire in 2011, the expectation was that once the estate tax was gone for even one year, it would never return or at the very least Congress would extend the 2009 terms.
In 2009, the first $3.5 million of an estate generally was excluded from federal taxes with a top tax rate of 45%. The federal estate tax was scheduled to temporarily disappear in 2010, before returning in 2011 at an even higher 55% rate. During 2010 without an estate tax, all estates over $1.3 million would be subject to a 15% capital gains tax. Law makers are attempting to change that along with the 2010 inheritance tax rate, and are discussing making laws retroactive to January 1, 2010.
Comments
Post a Comment