Monday 11th of December 2017 12:25:58 AM

  • Could it Be? Free of Estate Taxes?

    Friday 11th of January 2013 1:34:15 PM

    Good News! The Internal Revenue Service has announced that US tax payers are now able to leave an additional$130,000 (free of estate taxes) to their successors due to the new “cost-of-living” adjustments.

    According to a statement from the Internal Revenue Service this estate tax exemption starting for 2013 will be increased from $5.12 million (2012) to $5.25 million for individuals. Married couples will have a mutual threshold of $10.5 million.

    On January 1st, Congress passed a budget deal making state and gift tax exclusions permanent. Also Congress indexed them for inflation so that they would amplify over time. If Congress had not taken action, the exemption limits were supposed to plummet to $1 million in 2013.

    The standard deduction, personal exemption thresholds and the brackets for income tax rates will be affected as well due to the new cost-of-living adjustments made by the IRS. This new budged deal has fashioned a new tax rate of 39.6% for individuals who have an annual income that surpasses $400,000 for individuals and $450,000 for married couples

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