Monday, January 26, 2015

The 7520 rate for February has decreased to 2.0%.

The February 2015 Applicable Federal Interest Rates can be found here.

Monday, January 26, 2015

177572431As reported on this blog last year, New York State modified its estate tax system by gradually increasing the estate tax exemption along with some other changes. The hope and intent were to keep New York State’s estate tax more competitive and in line with other states within the country to prevent a migration of New Yorkers from the state to avoid state estate tax. However, the language in the New York State stature which made these modifications created some significant problems for New Yorkers. The New York State Society of Certified Public Accountants, through its Estate Planning Committee, has proposed some additional reforms to the New York tax law (the “Proposal”) which attempt to eliminate some of the perceived unfairness in current New York law.

As it currently stands, for a New Yorker with a taxable estate valued between 100% and 105% of the basic exclusion amount, the applicable credit amount is phased out. However, a New Yorker with a taxable estate that exceeds 105% of the basic exclusion amount will be taxed on his or her entire estate, not just the excess over the exclusion amount. So, for example, if you are a New Yorker and you die in January 2015 when the New York State estate tax exclusion amount is $2,062,500 with an estate of over $2,165,625, your estate will be taxed on its entirety not just the amount in excess of the $2,062,500 basic exclusion amount. The Proposal eliminates the cliff altogether by (more…)