Wednesday, January 12, 2011
The New Tax Law: What Does It Mean For You?
Right before the end of the year, Congress passed and the President signed a major new tax law. What does it mean for you?
Our new tax law is far reaching and will affect every aspect of your life. Over the next few days, I'll have several articles for you about different features of this new law.
Before getting into details, let's just list several features of the new law.
1. The Bush era income tax cuts have been extended.
2. The estate tax exemption becomes $5 million retroactive to 1/1/2010.
3. The carry-over basis rules that were in effect for 2010 estates with a 0 estate tax are now optional via election for 2010 estates.
4. The new $5 million estate tax exemption means that old style A-B or Marital Deduction trusts are no longer viable and will create major problems for your family.
5. Unused exemption from the first spouse's death now can be used at the second spouse's death, but require the filings of estate tax returns with the IRS.
That's just a quick introduction to the new law. Many more details will follow.