Every year the IRS must adjust the dollar amounts of a variety of provisions which affect every taxpayer, to keep pace with inflation. New dollar amounts affecting 2012 returns, filed by most taxpayers in early 2013 include the following: more…

Annual Exclusion

Taxpayers are allowed to gift up to $13,000 per year to an unlimited number of people without having to file a gift tax return or pay a gift tax. If the amount goes over $13,000 to any one individual, then a gift tax return must be filed. This is done on IRS Form 709, United States Gift Tax Return. Connecticut taxpayers required to file a federal gift tax return would be required to file Form CT-706/709. The returns are due on April 15. A six month extension of time is granted automatically if an extension of time to file is requested for your individual income tax return. This is done on Form 4868. Taxable gifts above the annual exclusion reduce the federal estate tax exclusion amount when someone passes away. There are a few additional opportunities to gift beyond the annual exclusion without having to file a gift tax return. more…

Donors should give appreciated property to their favorite charity. Appreciated property is property whose Fair Market Value exceeds the cost basis.  Cost basis is generally what was paid for an item. more…

19 Kids and Counting is TLC's TV show about the Duggar family.  I'm not sure what is scarier, the fact that they already have 19 kids or the rest of the title…"and Counting." more…

For 2011 and 2012, the federal estate tax exclusion is $5 million.  For taxable estates in excess of $5 million, the highest federal tax rate is 35%.  If there are no changes to the law, the federal estate tax exclusion will decline back to $1 million in 2013 and the highest federal estate tax bracket will be 55%.

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