By Julie Malekhedayat, CPA, Principal
ASL Family Wealth & Individual Tax Group
Estate tax repeal is on the wish list of both the Republican party and the new President and is an idea that is generally popular with voters. However, a repeal of the existing transfer tax system would likely impact taxpayers in ways they are not aware of. In 2015, only 4,918 estates paid estate taxes, but the beneficiaries of all estates benefited from the income tax savings of a higher tax basis for the assets they inherited. Historically the repeal of an estate tax has been accompanied by changes in income tax rules that could reach far more taxpayers than the estate tax itself. (more…)
By Rob Trammell, Principal
Recently, a number of U.S. corporations –including Burger King, Medtronic, and Steris Corp. – have announced possible plans to move their corporate addresses overseas by merging with a foreign company. Some worry that the recent influx of inversions will harm the U.S. and its tax base. But why so much interest in corporate inversions, what are the benefits, what is the IRS’s stance on this issue, and how can it impact you as a shareholder?
“Many tax rates are set to increase in 2013,” says Rob Trammell, a principal at the Silicon Valley accounting firm of Abbott, Stringham & Lynch. “This means taxpayers will want to plan now, and monitor that plan to ensure they take appropriate action throughout 2012 before tax rates increase next year.” Trammell says if you wait until next tax season when you file your 2012 return to assess, plan and take action, it may be too late to fully enhance your tax position. Trammell says the scheduled 2013 rate increases include the tax rate on ordinary income, additional tax on investment income for high-income individuals, and long-term capital gains tax rates, “As you consider the impact of these increases, one of the questions you’ll want to ask yourself is does it make sense for me to accelerate income into 2012.”