2013 Estate Tax Possibilities

12/07/2012

Democarats and Republicans are finally putting their cards on the table when it comes to the future of the estate tax.  President Obama, through Treasury Secretary, told House Speaker John Boehner that beginning in 2013 the estate tax exemption should be set at $3.5 million (down from $5.12 million in 2012) and the estate tax rate should be set at 45% (up from 35% in 2012). President Obama has supported these numbers since he was a presidential candidate in 2008 and has included them in his budget proposals as president (these numbers actually went into effect for just one year in 2009).  

The Republicans have presented a tax plan that will keep the estate tax exemption at its current amount ($5.12 million) for 2013.

If they cannot agree, the amount automatically goes down to $1 million in 2013.

Hopefully an agreement can be reached.  All we can do is wait and see.

Stay tuned.