We all know the saying about death and taxes being the only certainty in life. Well, ironically, there is very little certainty when it comes to the “Death Taxes.” Just this week, I received a newsletter from an Illinois attorney, Manish Bhatia, in which he explained how President Obama’s new tax proposal included changes to […]
Governor Dayton recently proposed a budget that, among other things, may broaden the “snow bird” tax base. While those affected by the proposed legislation are most likely wealthy people who have second homes in warmer climates, the law would affect any individual who owns Minnesota real estate and spends more than 60 days in Minnesota […]
Anytime you are looking to hire a professional advisor (which for purposes of this article shall include, but is not limited to, a financial advisor, attorney, insurance agent, banker and/or accountant), you should do some preliminary homework to determine the type of person with whom you would like to work and prepare some questions to […]
For months before the end of 2012, the “fiscal cliff” dominated news cycles. Now, we have the sequester. The sequester is a series of automatic spending cuts to the federal budget to reduce spending by $1.2 trillion over the next ten years. The sequester will take effect on Friday, March 1st, unless the White House […]
Although you may earn too much to contribute to a Roth IRA, there is no income restriction to convert a traditional IRA to a Roth IRA. What is a Backdoor Roth IRA? The Backdoor Roth IRA is an indirect way to contribute to a Roth IRA when your income is too high to contribute directly […]
Some people continue to ask why they need an estate plan, especially since Congress passed the American Taxpayer Relief Act, which made the $5 million federal estate tax exemption permanent. The question is often, “If my estate is under $5 million, why do I need an estate plan or need to be concerned with any […]
Amid all the other fiscal cliff headlines and the American Taxpayer Relief Act provisions, you may have missed the annual gift-tax exclusion changes that automatically became effective January 1, 2013. The annual gift-tax exclusion increased from $13,000 to $14,000. You can give away up to $14,000 in 2013 to as many different recipients as you […]
The American Taxpayer Relief Act of 2012 does the following: Tax Rates – For most individuals it extends the lower federal income tax rates that have existed for the last ten years. However, if you make more than $400,000 (or $450,000 for joint filers), your top rate will increase to 39.6%. Capital Gain Rates – Again for […]
Congress passed The American Taxpayer Relief Act of 2012 on January 1, 2013. Among its many provisions are the following pertaining to estate taxes:
The Minnesota Department of Revenue (“DOR”) is preparing a report that analyzes Minnesota’s current estate tax laws. The report will provide the Legislature with options to consider for changes to or elimination of the estate tax.
Scheduled to decrease January 1, 2013, the federal gift tax exemption will go from the $5.12 million to $1 million*. Many individuals have made substantial gifts this year to take advantage of the high exemption. The type of assets gifted vary; from unique art collections and family business interests to real property, securities, and cash. […]