The federal estate tax, better known as the death tax, was eliminated this year after a decade-long phase-out. Nothing in Washington is permanent, however, and due to a quirk in budget law, it comes roaring back to life in 2011 (less than four months from now) at a 55 percent rate and only $1 million exemption—its levels prior to the phase-out—unless Congress acts before the end of the year. There have been sporadic efforts in the Senate this year to address this impending massive tax hike that will threaten the …
In a front page article today, the New York Times has a story on the federal death tax and the impact its 2010 expiration has on a recently deceased billionaire. The article is riddled with errors, but the title of the article encapsulates perfectly the story’s biggest flaw: “Legacy for One Billionaire: Death, but No Taxes.” Billionaire Dan Duncan died in March of this year and left his family a considerable estate. Because the death tax does not apply for 2010, the New York Times wrongly claims that his heirs …
If you ask attorney Harold Apolinsky who really profits from the death tax, he’ll tell you, “I think I do, as an estate planning lawyer,” but then he will tell you why the tax needs to be permanently repealed. According to Apolinsky, the death tax (or estate tax, as it is also known) taxes the transfer of a business from the deceased to their heirs upon death at an extraordinarily high rate. The tax first came into law in 1917 in order to pay for World War I, was abolished …
Hancock Lumber company has been around for 180 years, was started before more than half the states joined the Union, survived the Civil War and two World Wars, but now faces one of its greatest challenges: paying the death tax. Owner Kevin Hancock counts himself among the six generations of his family who have worked for the Maine-based company that provides lumber to contractors and home builders. Hancock explains that once the estate tax (otherwise known as the “death tax”) hits, Hancock Lumber will have to sell some or all …
The death tax will expire tonight as soon as the ball drops and 2010 officially begins. This is good news for the businesses and families the tax plagues. Unfortunately, this triumph may be short-lived as Congressional leaders have pledged to revive the death tax in the new year and make it retroactive so anyone that passes away during the period the tax is repealed will still have to pay. This could be difficult legally and will undoubtedly lead to many lawsuits that will play out for years. Not to mention …
Timing is everything in life. And in death. America’s level of death taxes is a bouncing ball—a political football because Congress is fumbling around with legislation that makes a dramatic difference measured in jobs as well as in dollars. As the law is now, anyone who dies during 2010 will pay no estate tax. But die in 2009 and the rate is 45% of the taxable estate. Die in 2011 or later and it’s 55%. The amount exempted from tax also fluctuates from $3.5-million this year to immaterial next year …
The U.S. House of Representatives voted to permanently extend the death tax at its current 45 percent rate and $3.5 million exemption. This is a significant tax hike since the death tax was supposed to expire on January 1, 2010. The increase of the death tax is a major blow to the badly weakened economy since the tax is a huge drag on economic activity. It is also a major disappointment for countless family-owned businesses slammed hard by this unfair tax. Despite passage in the House, the death tax increase …
The Washington Post reports: The House approved Thursday a measure making the current estate tax rate permanent, overcoming the objections of an unusual coalition of liberal and conservative critics. The bill passed, 225 to 200, with 26 Democrats joining all Republicans present to vote no. It would make permanent the current estate tax rate of 45 percent, with an exemption of $3.5 million per individual. If Congress does not act, the estate tax would disappear altogether in 2010, then return in 2011 under the higher rates — 55 percent and …
The U.S. House of Representatives will vote this week on a bill that would permanently extend the estate tax (known better as the death tax) at its current rate and exemption level. This extension would prevent the death tax from expiring as scheduled on January 1, 2010. As such it would be a significant tax increase. Before voting to extend the death tax, Congress should consider the devastating impact it has on family-owned businesses. Grande Harvest Wine, a family-owned wine retailer operating in Grand Central Terminal in New York City, …
The U.S. House of Representatives will vote this week on a bill that would permanently extend the estate tax (known better as the death tax) at its current rate and exemption level. This extension would prevent the death tax from expiring as scheduled on January 1, 2010. As such it would be a significant tax increase. Before voting to extend the death tax, Congress should consider the devastating impact it has on family-owned businesses. Reliable Contracting, a family-owned business in Millersville, Maryland, for example, had to pay a death tax …
