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Copyright 2001, 2011, Marc S. Weissman Weiss & Weissman, San Francisco, California (650) 574-0362 To Contact us: email Phone/Fax/Mail Homepage |
NEWS FLASH: 11/21/2011: The SuperCommitte has done nothing to terminate the $5,000,000 gift tax free amount prior to its scheduled expiration 1/1/2013.
More updates to follow as news becomes more certain.
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The 2001 Tax Act, passed in June, 2001, expires in January 2013.
| Die in: | Death Tax Free Amount | Gift Tax Free Amount |
| 1997 | $600,000 | $600,000 |
| 1998 | $625,000 | $625,000 |
| 1999 | $650,000 | $650,000 |
| 2000-2001 | $675,000 | $675,000 |
| 2002-2003 | 2001 Bush Law passed the Senate 51-50. $1,000,000 tax free, and increasing!! Bush Law expires January, 2011, since it was approved 51-50 in the US Senate. | $1,000,000 |
| 2004-2005 | $1,500,000 | $1,000,000 |
| 2006, 7, 8 | $2,000,000 | $1,000,000 |
| 2009 | $3,500,000. | $1,000,000 |
| 2010 | NO TAX IF YOU DIE IN 2010.
WATCH OUT FOR YOUR KIDS THIS YEAR. Billionaires who died in 2010 paid NO
TAX. (George Steinbrenner + Walter Shorenstein) The step-up in basis will be allowed only for $1,300,000, plus $3,000,000 left to a surviving spouse. This is the culmination of the 2001 Bush Tax Law, which expires January 1, 2011. Obama December, 2010 update: You may use the NO TAX Rule, OR the new law allowing tax free $5M and full step-up in basis. | $1,000,000 |
| 2011 | $5,000,000 + 35% tax on the excess | $5,000,000 |
| 2012 | $5,120,000 (indexed for inflation) + 35% tax on the excess | $5,120,000 |
| 2013 AND LATER | We revert, again, to $1M + 55% tax on the excess, but watch for updates! | $1M |
Of course, a couple can double the tax free amount with a Living Trust.
Further changes in the rules are almost a certainty.