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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.
Hurricane Sandy has left her mark. This included power outages, significant property damage and, sadly loss of life.
No Fifty Shades of Grey here. Here are Fifty Black and White Tax Deductions and Credits.
1) Standard Deduction – Taxpayers can take the higher of the Standard Deduction or their Itemized Deductions.
2) Medical Expenses
3) Medical Miles – The deduction for medical miles is currently 23 cents per mile.
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 »
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 … Continue reading »