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Posts Tagged ‘Gift Tax’
A Summary of the American Taxpayer Relief Act of 2012
The Federal Government avoided the Fiscal Cliff...Well, for now any way.
At the very last minute they passed the American Taxpayer Relief Act of 2012. Here are some of the highlights:
Income, Capital Gains and Qualifying Dividends Tax
The Last (Really BIG) Tax-Free Gift
Under current federal estate tax law there is an exclusion up to $5.12 million in 2012. Taxable estates above this amount are taxed at 35%. This exclusion is scheduled to decrease to $1 million beginning in 2013. The tax rate will also increase to 55%. This exclusion can be used either at death or during life. In other words, the federal estate tax and the federal gift tax are unified.
8 Reasons You Will Pay More Taxes in 2013…Guaranteed
1) Increase in Ordinary Income Tax Rates
The highest ordinary income tax rate is 35%. This is scheduled to go up to 39.6%
3 Reasons Many Family Loans Turn into Grants
Have you made a loan to a child or grandchild?
When making a loan, you have an expectation of getting paid back. When a family loan turns into a grant, you’re not going to get paid back. Here are 3 reasons a family loan may turn into a grant.
3 Easy Ways to Financially Help Your Children or Grandchildren
Do your children or grandchildren need some financial assistance?
Here are 3 Easy Ways to help them:
1) Make a Loan
Parents and grandparents can loan to their child or grandchild. If this is the approach taken, a formal loan agreement should be drawn up. This should include interest and the repayment terms. The Internal Revenue Service ("IRS") will require a minimum amount of interest to be … Continue reading »
