Senate leaders appear to now be working on addressing estate tax according to an article with The Hill. As we know, both Houses of Congress failed to act last year to extend the 2009 tax exemption of $3.5 million into the future. Because of this failure, 2010 is the year in which we do not have estate tax, but we have a new, complex system for the allocation of cost basis to a deceased person’s assets when determining capital gains/losses after death.
As with anything in Congress, politics will drive whether the extension is passed. Republican leaders appear to agree to support a jobs bill in exchange for reverting back to the 2009 estate levels. Truth is, the Republicans would prefer to have a larger exemption of $5 million, adjusted for inflation, with a 35% tax rate, as proposed by Senate Minority Whip Jon Kyl (R-Ariz) and Sen. Blanche Lincoln (D-Ark).
However, getting a $3.5 million exemption is much better than allowing the rules to play out – an exemption of $1 million with a 55% tax rate!
Tags: Attorney, Clearwater, Estate Planning, estate tax, Joshua T. Keleske, Last Will & Testament, Lawyer, Revocable Trust, Saint Petersburg, Tampa
