Estate Taxes
Middle Class Tax Relief Act of 2010 – Estate and Gift Taxes
This statute, which was a compromise between the Republicans in Congress and President Obama relieves Americans from high estate taxes in 2011 and 2012. For these estate dying in 2011 and 2012 over and above five (5) million dollars will be taxed at a rate which will not go higher than thirty-five (35%) percent. In addition, real property will have a “stepped up” tax basis based on the value of the property on the date of death. This will reduce capital gains taxes when the property is sold.
Executors, administrators and trustees will have a second option regarding estate taxes for the years 2011 and 2012.
Under this option, there will be no federal estate taxes. In consideration, for the waiver of Federal Estate Taxes, there will be a very limited ability to have a stepped up cost basis in the property that the beneficiaries receive, to date of death values. In this situation when the estate property is sold, there will be a more significant capital gains tax.
After 2012, unless Congress acts again to pass a new estate tax law for 2013, the estate tax rate will revert back to one million dollars per person and estate tax rates will climb back up to fifty-five 55% percent. Hopefully, Congress will get its act together and pass a new Estate Tax Law prior to 2013.
Law Offices of Schlissel DeCorpo
479 Merrick Road
Lynbrook, NY 11563
CONTACT US TODAY
Email: [email protected]
Nassau County: 516-561-6645
Suffolk County: 631-319-8262
Queens: 718-350-2802
#lawfirm #lawyer #lawyers #nyc #law #attorney#legalservices#nyclawyers