Enid Ablowitz: Tax-wise giving - Boulder Daily Camera: Happy New Year! As part of the "fiscal cliff" compromise legislation, Congress did three things that impact donors:
They approved the IRA Charitable Rollover.
They imposed limits on itemized deductions for higher-income taxpayers.
They "permanently" modified the estate tax calculation.
With thanks to the University of Colorado Foundation and especially Vice President Kristen Dugdale, here's a summary of the changes:
Showing posts with label NPEstateTax. Show all posts
Showing posts with label NPEstateTax. Show all posts
Monday, January 14, 2013
Thursday, December 22, 2011
Where Not To Die In 2012 - Forbes
Where Not To Die In 2012 - Forbes: As of Jan. 1, 2012, the federal estate tax exemption will be indexed for the first time, so that for 2012, up to $5.12 million of an estate will be exempt from the current 35% federal estate tax. That’s up from $5 million in 2011, meaning an individual could leave $120,000 more federal-estate-tax-free if he dies on Jan. 1, 2012, not Dec. 31, 2011. Meanwhile, separate state levies are still a big concern for families. And there are changes for 2012 on the state levies on dying—for better and for worse
Thursday, January 07, 2010
Tuesday, January 05, 2010
Estate Tax: What You Need to Know for 2010 - CBS MoneyWatch.com
Estate Tax: What You Need to Know for 2010 - CBS MoneyWatch.com: "At first glance, the failure of Congress to plug the 2010 estate tax loophole appears to be good news for children of ailing rich parents — and of little consequence to everyone else. But in fact, by letting the tax lapse, Congress has created a bunch of unintended consequences and increased the chances that you will owe taxes on an inheritance. Yes, the perverse result of the disappearing estate tax is that some people of lesser means may owe capital gains taxes on inherited assets. What’s more, since many wills and trusts are written on the assumption that the estate tax exists, a will that made sense last year (or any other year, for that matter) could result in your surviving spouse getting shut of your estate."
Friday, December 04, 2009
House establishes permanent 'death tax' branch (OneNewsNow.com)
House establishes permanent 'death tax' branch (OneNewsNow.com): "The House passed a permanent extension of the 45 percent federal estate tax yesterday over the objections of Republicans who say the death tax needs to be completely abolished. Majority Leader Steny Hoyer hailed the death tax extension as permanent 'tax relief' for American families, saying it 'strikes a fair balance between what we owe to families, farmers, and small businesses.' He also billed it as 'an important step toward fiscal responsibility.'"
Monday, June 08, 2009
More wealthy Americans donating through foundations - Business - Bradenton.com
More wealthy Americans donating through foundations - Business - Bradenton.com: "Instead of leaving behind large estates that are taxed heavily before distributed, the wealthy can give through charitable organizations and protect their portfolios from government taxes.
The current estate tax, often known as the death tax, charges all estates worth $3.5 million or more at a 45 percent rate."
The current estate tax, often known as the death tax, charges all estates worth $3.5 million or more at a 45 percent rate."
Monday, April 13, 2009
A Time for Giving - WSJ.com
A Time for Giving - WSJ.com: "t may be tough expanding your wealth in an economy that is teetering, but giving it away to heirs is getting a whole lot easier, thanks to rock-bottom interest rates.
Some estate-planning professionals are urging clients to take advantage of the situation by setting up grantor-retained annuity trusts, vehicles designed to minimize or eliminate gift taxes on wealth transferred out of an investor's estate during his or her lifetime."
Some estate-planning professionals are urging clients to take advantage of the situation by setting up grantor-retained annuity trusts, vehicles designed to minimize or eliminate gift taxes on wealth transferred out of an investor's estate during his or her lifetime."
Wednesday, April 01, 2009
56 National Organizations Oppose More Tax Cuts for Millionaires | OMB Watch
56 National Organizations Oppose More Tax Cuts for Millionaires | OMB Watch: "The House and Senate are debating the FY 2010 budget resolution on the floor this week and in anticipation of regressive amendments that would expand the cut to the estate tax enacted under the Bush administration, OMB Watch joined 55 other national nonprofit organizations have sent a letter to each senator urging them to oppose any amendment that further erodes the estate tax."
Thursday, March 12, 2009
Foundation Group Opposes Charitable-Deduction Cap and Supports Estate Tax - Philanthropy.com
Foundation Group Opposes Charitable-Deduction Cap and Supports Estate Tax - Philanthropy.com: "Foundation Group Opposes Charitable-Deduction Cap and Supports Estate Tax
The Council on Foundations has decided to oppose President Obama’s proposal to limit the tax break wealthy Americans get for charitable deductions, fearing that it would dampen giving, Steve Gunderson, the group’s president, said today.
The council, which represents more than 2,000 grant makers, also for the first time has decided to weigh in on the estate tax, formally backing President Obama’s plan to keep it at current levels, Mr. Gunderson said in an interview."
The Council on Foundations has decided to oppose President Obama’s proposal to limit the tax break wealthy Americans get for charitable deductions, fearing that it would dampen giving, Steve Gunderson, the group’s president, said today.
The council, which represents more than 2,000 grant makers, also for the first time has decided to weigh in on the estate tax, formally backing President Obama’s plan to keep it at current levels, Mr. Gunderson said in an interview."
Monday, August 18, 2008
Cumberland Times-News - Habitat for Humanity closer to realization in county
Cumberland Times-News - Habitat for Humanity closer to realization in county: "Habitat for Humanity closer to realization in county
Kevin Spradlin
Cumberland Times-News
CUMBERLAND - The 13-member steering committee charged with bringing Habitat for Humanity to Allegany County has earned its official status as a 'prospective affiliate.'
The status change allows the group, headed by local real estate agent Kathy Miller, to solicit tax-deductible donations as Allegany County Habitat for Humanity. Should the organization not gain permanent status within 12 months, the donations would be distributed to another affiliate."
Kevin Spradlin
Cumberland Times-News
CUMBERLAND - The 13-member steering committee charged with bringing Habitat for Humanity to Allegany County has earned its official status as a 'prospective affiliate.'
The status change allows the group, headed by local real estate agent Kathy Miller, to solicit tax-deductible donations as Allegany County Habitat for Humanity. Should the organization not gain permanent status within 12 months, the donations would be distributed to another affiliate."
Monday, November 19, 2007
Where are all the charitable bequests? | csmonitor.com
Where are all the charitable bequests? | csmonitor.com:
"Only 8 percent of Americans have named a charity in their wills, according to a survey released earlier this year from Indiana University's Center on Philanthropy. That's in spite of the fact that Americans are a generous lot: Two out of every 3 have given to charity in recent years, according to the same survey.
Charitable bequests are also becoming more rare. From 1998 to 2006, the estimated yearly number of people who left money to charity has dropped from 17,587 to 9,522, according to Internal Revenue Service data. Over that period, fewer estates became subject to federal tax as the threshold for taxable estates rose from $625,000 in 1998 to $2 million in 2006."
"Only 8 percent of Americans have named a charity in their wills, according to a survey released earlier this year from Indiana University's Center on Philanthropy. That's in spite of the fact that Americans are a generous lot: Two out of every 3 have given to charity in recent years, according to the same survey.
Charitable bequests are also becoming more rare. From 1998 to 2006, the estimated yearly number of people who left money to charity has dropped from 17,587 to 9,522, according to Internal Revenue Service data. Over that period, fewer estates became subject to federal tax as the threshold for taxable estates rose from $625,000 in 1998 to $2 million in 2006."
Monday, October 29, 2007
Name game may change at UI - Metro
Name game may change at UI - Metro: "The state Board of Regents is considering a proposal that would allow buildings, schools, and other major parts of its universities to be named for products and corporations.
The policy restates the regents' authority to approve and re-examine the naming of any major unit of a public university. The proposal states that the regents will only approve the names of commercial entities 'in rare instances,' but Regent President Michael Gartner has said the future of university philanthropy may lie in corporate donations.
The policy would require universities to conduct 'due diligence' reviews of potential conflicts of interest when accepting gifts and possible impacts on tax-free funding and UI research. The plan also encourages the use of contracts stating that a large gift won't necessarily result in a name."
The policy restates the regents' authority to approve and re-examine the naming of any major unit of a public university. The proposal states that the regents will only approve the names of commercial entities 'in rare instances,' but Regent President Michael Gartner has said the future of university philanthropy may lie in corporate donations.
The policy would require universities to conduct 'due diligence' reviews of potential conflicts of interest when accepting gifts and possible impacts on tax-free funding and UI research. The plan also encourages the use of contracts stating that a large gift won't necessarily result in a name."
Thursday, August 16, 2007
CNW Group-AFP Press Release-"AFP Urges Parliament to Increase Charitable Giving Incentives
CNW Group: "AFP Urges Parliament to Increase Charitable Giving Incentives <<>> OTTAWA, Aug. 15 /CNW/ -- The Association of Fundraising Professionals (AFP) today called on Parliament to encourage charitable giving by eliminating the capital gains tax on gifts of land and real estate and creating a government-recognized National Philanthropy Day."
Tuesday, May 01, 2007
Millionaires Increased Charitable Donations in 2006, but Interest Appears Waning, Says Northern Trust
Millionaires Increased Charitable Donations in 2006, but Interest Appears Waning, Says Northern Trust: "CHICAGO, May 1 /PRNewswire/ -- Millionaire households increased their charitable donations by more than 20 percent in 2006 over the previous year, but donations in 2007 are expected to be lower. Due in part to current charitable giving levels, the uncertainty regarding estate tax laws, and family care obligations, affluent families attach less importance to making charitable donations, fewer say they want to be personally involved in their charities and fewer plan to increase their contributions this year, according to Wealth in America 2007,"
Tuesday, April 03, 2007
Preparing for life after cash out - Yahoo! News
Preparing for life after cash out - Yahoo! News: "With the sale of a business or a large concentrated asset holding, there is the creation of liquid wealth. I've seen it work out exceptionally well and not so well,' he says. 'The difference is the level of planning and how the proceeds are invested at the point of liquidity and beyond. It's a good problem, but it's still a problem and you need to optimise the solutions.'
There are several pre-liquidity strategies that can help lower federal transfer taxes, which include the gift tax, the estate tax and the generation-skipping transfer (or 'GST') tax. They range from basic steps such as taking advantage of the annual gift tax exclusion - you can make annual gifts of up to $12,000 tax-free to any number of people, with a lifetime exclusion of $1m per donor - to setting up a Grantor Retained Annuity Trust (GRAT) and making an instalment sale to a Grantor Trust."
There are several pre-liquidity strategies that can help lower federal transfer taxes, which include the gift tax, the estate tax and the generation-skipping transfer (or 'GST') tax. They range from basic steps such as taking advantage of the annual gift tax exclusion - you can make annual gifts of up to $12,000 tax-free to any number of people, with a lifetime exclusion of $1m per donor - to setting up a Grantor Retained Annuity Trust (GRAT) and making an instalment sale to a Grantor Trust."
Thursday, January 18, 2007
Why the rich are heading back to school
Why the rich are heading back to school: "Why the rich are heading back to school
Wednesday, January 17, 2007
By Rachel Emma Silverman, The Wall Street Journal
The wealthy are flocking back to school to learn how to be rich.
As investing and estate planning grow ever more complex -- with labyrinthine trusts, derivatives, hedge funds, structured products, complex philanthropic options and ever-changing tax laws -- wealthy individuals increasingly want to get a better handle on what to do with their money."
Wednesday, January 17, 2007
By Rachel Emma Silverman, The Wall Street Journal
The wealthy are flocking back to school to learn how to be rich.
As investing and estate planning grow ever more complex -- with labyrinthine trusts, derivatives, hedge funds, structured products, complex philanthropic options and ever-changing tax laws -- wealthy individuals increasingly want to get a better handle on what to do with their money."
Wednesday, July 26, 2006
A Mammoth Wealth Transfer Awaits the Area, Study Predicts
A Mammoth Wealth Transfer Awaits the Area, Study Predicts: "A Mammoth Wealth Transfer Awaits the Area, Study Predicts
By Jacqueline L. Salmon
Washington Post Staff Writer
Wednesday, July 26, 2006; Page A01
Washington area residents are expected to bequeath $2.4 trillion over the next 50 years -- an amount to be divided among heirs, charities and estate taxes -- in what is believed to be the largest transfer of wealth in the region's history, according to a new study.
Their beneficiaries will inherit about half of those assets, charities will get close to $460 billion and estate fees and taxes will eat up the rest, according to the study by Boston College's Center on Wealth and Philanthropy, to be released this week."
By Jacqueline L. Salmon
Washington Post Staff Writer
Wednesday, July 26, 2006; Page A01
Washington area residents are expected to bequeath $2.4 trillion over the next 50 years -- an amount to be divided among heirs, charities and estate taxes -- in what is believed to be the largest transfer of wealth in the region's history, according to a new study.
Their beneficiaries will inherit about half of those assets, charities will get close to $460 billion and estate fees and taxes will eat up the rest, according to the study by Boston College's Center on Wealth and Philanthropy, to be released this week."
Tags:
Friday, July 21, 2006
HHS Secretary's Fund Gave Little to Charity
HHS Secretary's Fund Gave Little to Charity: "HHS Secretary's Fund Gave Little to Charity
By Jonathan Weisman
Washington Post Staff Writer
Friday, July 21, 2006; Page A01
Health and Human Services Secretary Mike Leavitt and his relatives have claimed millions of dollars in tax deductions through a type of charitable foundation they created that until recently paid out very little in actual charity, tax records show.
Instead, much of the foundation's money has been invested or lent to the family's business interests and real estate holdings, or contributed to the Leavitt family genealogical society."
By Jonathan Weisman
Washington Post Staff Writer
Friday, July 21, 2006; Page A01
Health and Human Services Secretary Mike Leavitt and his relatives have claimed millions of dollars in tax deductions through a type of charitable foundation they created that until recently paid out very little in actual charity, tax records show.
Instead, much of the foundation's money has been invested or lent to the family's business interests and real estate holdings, or contributed to the Leavitt family genealogical society."
Tags:
Monday, July 17, 2006
thedesertsun.com | Don't let Buffett's donation discourage you
thedesertsun.com | Don't let Buffett's donation discourage you:
snip snip>>
"There are probably many influences on Buffett to give the money over a series of years rather than all at one time, I am sure that one of them is the tax ramifications. Charitable gifts of appreciated stock such as his Berkshire shares can only be deducted when given to a public foundation to the extent of 30 percent of your income. Any amounts over and above the 30 percent are carried forward for five years.
Although I don't know what Buffett's adjusted gross income is, my guess is that the $1.5 billion will probably fit somewhere into that limitation. The Gates Foundation will continue to receive the gifts either directly from Buffett or through his estate, as long as Bill or Melinda Gates are active in the foundation. Here again, this will afford the Buffett estate a deduction for gifts after his death since they go to a charitable foundation.
Based on recent Internal Revenue Service statistics, estates that had over $20 million of taxable assets saw charitable giving actually fall by an average of $2 million or 9 percent from 1995 to 2004. Buffett has gone a long way in reversing this trend. Perhaps other charitable minded individuals will reconsider their charitable bequests. Even if you are not in the multi-million dollar category, there are many ways that you can take advantage of the gifts that you do make during your life or bequests on death."
snip snip>>
"There are probably many influences on Buffett to give the money over a series of years rather than all at one time, I am sure that one of them is the tax ramifications. Charitable gifts of appreciated stock such as his Berkshire shares can only be deducted when given to a public foundation to the extent of 30 percent of your income. Any amounts over and above the 30 percent are carried forward for five years.
Although I don't know what Buffett's adjusted gross income is, my guess is that the $1.5 billion will probably fit somewhere into that limitation. The Gates Foundation will continue to receive the gifts either directly from Buffett or through his estate, as long as Bill or Melinda Gates are active in the foundation. Here again, this will afford the Buffett estate a deduction for gifts after his death since they go to a charitable foundation.
Based on recent Internal Revenue Service statistics, estates that had over $20 million of taxable assets saw charitable giving actually fall by an average of $2 million or 9 percent from 1995 to 2004. Buffett has gone a long way in reversing this trend. Perhaps other charitable minded individuals will reconsider their charitable bequests. Even if you are not in the multi-million dollar category, there are many ways that you can take advantage of the gifts that you do make during your life or bequests on death."
Tags:
Subscribe to:
Posts (Atom)