IRS Gift Tax Rules Benefit Wealthy

IRS
New IRS rules benefit wealthy individuals who want to pass on their treasure.

The IRS has released proposed rules that will benefit wealthy individuals who wish to pass on their money.

The proposed IRS rules clarify gift and inheritance tax benefits passed as part of last year’s overhaul of the tax code by the Republican-controlled Congress and signed by President Donald Trump.

According to Forbes:

Let the gifting begin! The Trump tax cuts bestowed a huge gift on the rich—a doubled estate and gift tax exemption—but it’s temporary, and there was unease as to whether gifts would be taxed later when the exemption fell. Now the Internal Revenue Service has come out with proposed rules saying that there is no clawback on these lifetime gifts. It means that the rich can now pass on tens of millions of dollars estate, gift and GST-tax free, without fear of later being taxed.

“Treasury has just confirmed that the increased estate and gift tax exemption is ‘a use it or lose it proposition,’” says Larry Heller, an estate lawyer with Greenberg Traurig in Los Angeles. This is important not only for avoiding the 40% gift and estate tax, but also the 40% generation-skipping transfer tax exemption, Heller says, noting that it preserves the $11 million-plus exemption not only for children but for grandchildren and several generations thereafter.

Sterling Accounting keeps track of IRS moves and tax law changes as part of our services.

As we point out on our website, “Whether you need a simple 1040EZ tax filing or a 1040, we can handle it all for you. We provide innovative solutions for tax issues to minimize your tax liability and find deductions commonly overlooked.  We stay up-to-date and well informed on all tax laws and legislation…It’s a delicate balance that exists between optimizing your after-tax income and minimizing your pre-tax dollars. We offer advice on both short-term and long-term tax strategies, initiatives and investments. Our tax service is designed exclusively to help you maximize your earning power!”

 

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