Source: http://floridaestateplanningandprobatelaw.blogspot.com/2016/10/
Timestamp: 2019-02-19 18:17:21
Document Index: 565245790

Matched Legal Cases: ['§401', '§403', '§457', '§401', '§403', '§457']

October 2016 | FLORIDA ESTATE PLANNING AND PROBATE LAW BLOG
♠ Posted by Marc Soss in 2017 federal estate tax exemption,2017 federal gift tax exemption,2017 retirement account,estate plan,Estate planning attorney,ESTATE TAX ELIMINATION,florida estate planning
Federal Estate & Gift Tax: The Federal estate tax exemption amount will be $5,490,000 in 2017. The annual gift exclusion amount will remain at $14,000 Qualified Plans for 2017: The limit on the maximum amount of elective contributions that a person may make to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan remains unchanged at $18,000. The limit on “catch-up contributions” to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan for persons age 50 and older remains unchanged at $6,000. The dollar limit on the maximum permissible allocation under a defined contribution plan is increased from $53,000 to $54,000. The maximum annual benefit under a defined benefit plan is increased from $210,000 to $215,000. The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified plan will go from $265,000 to $270,000. The dollar amount used to identify “highly compensated employees” remains unchanged at $120,000. Social Security Tax: The Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $127,200 for 2017, which is an increase from the 2016 limit of $118,500.
MASSACHUSETTS ESTATE AND PROBATE TAX TRAP AVOIDANCE
♠ Posted by Marc Soss in estate planning,estate taxes,Massachusetts estate tax ruling,probate attorney,probate lawyer
Since 2001, the Massachusetts Department of Revenue ("DOR") has taken the position that Massachusetts resident who die owning real estate or tangible personal property in states which do not impose a state estate tax (New Hampshire, Florida, etc...)the Massachusetts estate tax is applied to the total net value (including the assets in other states). In effect, if another jurisdiction charges an estate tax on real estate or tangible items located within its borders, Massachusetts allows a credit for the tax paid to the other jurisdiction. If no tax is charged, Massachusetts collected the tax attributable to that value as part of the total tax computed. However, a recent Massachusetts probate court held for the first time that a taxpayer who died with property in such a jurisdiction was able to exclude such property from their taxable estate, thus decreasing the tax significantly. While this decision was made by a state trial court, and not on the appellate level, the reasoning was based on solid U.S. Supreme Court precedent. The DOR does not seem likely to challenge the court’s reasoning. The U.S. Supreme Court previously ruled on this issue and found that such taxing schemes were in violation of the Due Process clause of the U.S. Constitution, because the person owning the land or tangibles in the other state derived no benefit from the laws of the state imposing the tax. Such benefits are held to be the basis of the state’s power to tax.
NEW JERSEY ELIMINATES ITS ESTATE TAX IN 2018, BUT KEEPS ITS INHERITANCE TAX
♠ Posted by Marc Soss in elder planning,Estate planning attorney,ESTATE TAX ELIMINATION,florida estate planning,florida probate attorney,florida probate lawyer,New Jersey Estate Tax elimination,New Jersey Inheritance tax
On October 14, 2016, Governor Chris Christie signed into law legislation which raises the New Jersey estate tax exemption to $2,000,000 in 2017 (up from $675,000) and eliminates it entirely in 2018. Until January 1, 2018, the New Jersey estate tax will continue to be applied based on a graduated rate table which begins at 4% for estates of $675,000 or more and increases to 16% for estates in excess of $10,100,000. While the New Jersey estate tax exemption is going away, the New Jersey inheritance tax will remain. The New Jersey inheritance tax only applies to transfers to other relatives and friends, and does not apply to transfers at death to parents, spouse, children and other descendants and charity. So ends New Jersey's reign as the state with the highest estate tax among those states which continue to impose an estate tax.
♠ Posted by Marc Soss in 2017 social security rates,retirement age,retirement benefits,Sarasota estate planning,Sarasota retirement planning,social security benefits
NEW JERSEY DISCUSSES ELIMINATION OF ITS ESTATE TAX
♠ Posted by Marc Soss in ESTATE TAX ELIMINATION,new jersey,retirement
Recent reports indicate that the State of New Jersey will officially eliminate it's estate tax. The tax elimination will be offset by an increase in the both the gas and sales tax. The tax reform will also include a larger tax credit for the working poor, a tax cut on retirement income, and a tax exemption for veterans who have been honorably discharged. It is anticipated that the estate tax exemption will increase from $675,000 (its current exemption amount) to $2,000,000 effective January 1, 2017 and be phased out completely over the next few years.
♠ Posted by Marc Soss in florida probate attorney,florida probate lawyer,florida tax lawyer,IRS estate tax liability,IRS personal representative liability,IRS tax relief,Sarasota Tax Attorney