Missouri Gov. Mike Parson recently signed into law legislation that reduces the state’s individual income tax rate.
The law, signed on Oct. 5, 2022, and effective for the 2023 calendar year, reduces the top individual income tax rate from 5.2 percent to 4.95 percent. It also eliminates the bottom income tax bracket, allowing Missourians to
Wolters Kluwer and Bloomberg Tax have released projected 2023 figures for the gift tax annual exclusion amount as well as the estate and gift tax lifetime exemption amount. These figures were determined using formulas contained in the Internal Revenue Code. They are based on the increase in the Chained Consumer Price Index for All Urban
Because of storms and flooding in the St. Louis area over the summer, the IRS recognized the city of St. Louis and Montgomery, St. Charles, and St. Louis counties in Missouri as a disaster area. As a result, taxpayers in the disaster area may qualify for tax relief including possible extensions for filings and payments
The June 2022 decision by the Federal Reserve to raise the federal funds rate by 0.75 percent marks the largest such increase in 28 years. Among the many areas this move will affect are estate and wealth transfer planning, as many common strategies have an interest component that can have a significant impact on the
It’s that time of year again! The start of 2022 has brought us an increase in exemption amounts for estate, gift, and generation-skipping transfer (GST) taxes. Each year, the Internal Revenue Service adjusts tax rates to provide for annual cost-of-living increases.
The original IRS release of the 2022 numbers can be found at https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022.
The latest text of the proposed reconciliation bill, titled the Build Back Better Act, published on October 28, 2021, is void of many of the prior proposed tax changes that would have upended estate planning. Changes that were included in the earlier version of the bill but not in this most recent version include:
On Monday, September 13, 2021, the House Ways and Means Committee released the text for proposed tax changes to be incorporated in a budget reconciliation bill called the Build Back Better Act (the “Act”). The 881-page text includes several significant changes to income and transfer taxes that could drastically change estate, gift and individual income
In Congress’ ongoing fight against fraud, corruption, terrorism financing and money laundering, lawmakers passed the Corporate Transparency Act (CTA) on January 1, 2021, as part of the 2021 National Defense Authorization Act. The CTA contains significant new federal reporting obligations and imposes heavy civil fines and criminal penalties for noncompliance. It may have an especially
Now that the new year has arrived, it is a good time to catch up on the latest tax rates for estate and trust income tax brackets and exemption amounts for estate, gift and generation-skipping transfer (GST) taxes in 2021. The Internal Revenue Service adjusts these figures annually for cost-of-living increases.
Below is a summary
In 2020, the estate/gift and generation-skipping (GST) transfer tax exemptions are each $11.58 million per person, and the tax rate for each is 40 percent. These exemptions will be reduced to $5 million (indexed for inflation) on Jan. 1, 2026, assuming Congress does not change the exemptions sooner.
Given the increasing national debt due to