Pending Legislation

Opportunities for 529 College Savings Plans

Posted on: May 24th, 2015
529 College Savings Plans consistently offer long-term tax-deferred growth for future students. As a savings tool, 529 plans come with a few restrictions. For one, contributions must be made with after-tax dollars. ...

Another Flip-Flop on Inherited IRA Stretch

Posted on: March 10th, 2012
Tax season is in full swing, and I was recently out of the office for a few days, so I’m a bit late in reporting this, but the provision to do away with the ability of most IRA beneficiary’s to stretch distributions over their life expectancies is now back on the table as part of the Senate Highway Bill. See Page 28 for details....

Stretch IRAs No Longer on the Chopping Block

Posted on: February 23rd, 2012
The the provision that would limit stretch IRAs (I blogged about it yesterday) has been removed from the proposed Highway Bill. Good news! See this article on AdvisorOne.com ...

No More IRA Stretching?

Posted on: February 22nd, 2012
Senator Baucus’ proposal to do away with stretching for most inherited IRA has not gone away as was anticipated earlier this month. A recently introduced Senate bill, S. 1813, the Highway Investment, Job Creation, and Economic Growth Act, ...

Estate and Gift Tax Bill Introduced in House

Posted on: November 23rd, 2011
On November 17, 2011, Congressman Jim McDermott (D-WA), a senior member of the House Ways and Means Committee, introduced HR 3467, the “Sensible Estate Tax Act of 2011”. Along with changes to the estate tax, the bill includes many of Obama’s 2012 Fiscal Year Proposals with regard to gift and GST taxes. The bill includes the following:...

Democrats to Introduce Bill to Lower Estate Tax Exemption to $1 Million

Posted on: November 17th, 2011
This news courtesy of Financial Advisor Nat Harris (emphasis added): House Democrats plan to introduce a bill today to extend and overhaul the estate tax beyond 2012 in the opening salvo of what is likely to be a long and politically-charged debate next year....

NC Homestead Exemption to Increase

Posted on: September 8th, 2011
House Bill 1058 – Effective December 1, 2009, an individual resident of North Carolina who is a debtor can retain, free from the enforcement of the claims of creditors, the debtor’s aggregate interest, not to exceed $35,000 in value, ...

Summary of Obama’s 2013 Budget Proposal for Estate and Gift Taxes

Posted on: June 29th, 2011
A June 22, 2011article on Trusts and Estates magazine’s website contains a nice summary of President Obama’s budget proposal measures effecting estate planning. ...

NC Court Costs May Increase

Posted on: June 2nd, 2011
If the pending appropriations bill in the North Carolina General Assembly passes and is signed into law by Governor Perdue, the filing fee for estates will increase to $120 effective July 1, 2011.  ...

2010 Tax Relief Act Passes House

Posted on: December 17th, 2010
Last night the House passed HR 4853 by a vote of 277-148 approving the Tax Relief Act of 2010 as passed by the Senate Wednesday. The bill now goes to the President for signature....

2010 Tax Relief Act Passes Senate

Posted on: December 15th, 2010
The Senate has passed (by vote of 81-19) the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief Act), and the House is expected to take up the measure tomorrow. The Act includes bringing back the $100,000 IRA spousal rollover for 2010 and 2011....

Summary of the Tax Relief Proposal

Posted on: December 10th, 2010
The Senate Finance Committee has produced a summary of the Reid Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which extends the Bush tax cuts for two years. ...

House to Obama on Tax Agreement – No Go!

Posted on: December 9th, 2010
The House has decided not to vote on the tax cut agreement Obama reached with Republican leaders earlier this week. Particularly objectionable was the proposed $5 million estate tax exemption. From CNN.com: ...

Obama, Republicans Reach Deal on Tax Cuts

Posted on: December 6th, 2010
The agreement includes a two year extension on the Bush income tax cuts, and with regard to the estate tax (from the Washington Post): "The deal also would revive the estate tax, but it would exempt inheritances of up to $5 million for individuals and $10 million for couples. ...

More on the Middle Class Tax Cut Act of 2010

Posted on: December 4th, 2010
Senator Max Baucus, Chair of the Senate Finance Committee on Finance, introduced the "Middle Class Tax Cut Act of 2010" which would make the Bush income tax cuts permanent for those making under $250,000 per year. ...

Tax Breaks to Disappear in 2011?

Posted on: October 26th, 2010
Congress left Washington with a big pile of unfinished tax issues still on the table. Under tax laws enacted in the past decade, many popular tax provisions expired at the end of last year, or they expire at the end of 2010....

“Tax Hike Prevention” Act of 2010 introduced in Senate

Posted on: September 20th, 2010
The Tax Hike Prevention Act of 2010 was introduced in the Senate on September 13 as Senate Bill 3773 "to permanently extend the 2001 and 2003 tax relief provisions and to provide permanent AMT relief and estate tax relief, and for other purposes." ...

The Latest Estate Tax Proposal

Posted on: June 27th, 2010
Friday’s Wall Street Journal had an article on the latest estate tax proposal, from independent Senator Bernie Sanders and Democratic Senators Tom Harkin of Iowa, Sheldon Whitehouse of Rhode Island and Sherrod Brown of Ohio....

Committee Chairs Reach Agreement on IRA Charitable Rollver and Tax Extenders

Posted on: May 22nd, 2010
Senate Finance Committee Chair Max Baucus (D-MT) and House Ways and Means Committee Chair Sander Levin (D-MI) announced that they have reached an agreement on continuing the IRA Charitable Rollover and many other tax saving extensions....

Estate Tax Agreement Falls Apart

Posted on: May 18th, 2010
TheHill.com reported today that, according to Senate Minority Whip Jon Kyl (R-Ariz.), a deal in the works between Senate Democrats and Republicans on the estate tax has fallen apart....

Progress on the Estate Tax?

Posted on: May 12th, 2010
More from theHill.com on the estate tax in Kyl: Deal on the estate tax in the offing: "Sources close to the matter told The Hill last week that lawmakers are looking to give taxpayers the option of prepaying their estate tax....

Movement on the Estate Tax?

Posted on: May 11th, 2010
On May 4, Senate Finance Chairman Max Baucus (D-Mont.) stated that members of Congress will discuss the estate tax along with a small business tax bill this week....

Update on Health Care Surtax

Posted on: March 22nd, 2010
The Reconciliation Bill (H.R. 4872), which passed the House and has gone to the Senate contains a 3.8% surtax on investment income for single taxpayers with modified adjusted gross income (MAGI) over $200,000, ...

10 Year Minimum GRAT Approved by Ways and Means Committee

Posted on: March 18th, 2010
Click "Continue Reading" for the pertinent text from the report by the staff of the Joint Committee on Taxation. ...

Battle to the Death (Tax)

Posted on: March 8th, 2010
Here’s the latest on the fight over the future of the estate tax tax, from Bloomberg.com. In general, Republicans and business lobbyists are pushing for a $5 million exemption and a 35% rate, ...

Senate discussing possible agreement on Estate Tax

Posted on: February 11th, 2010
Nothing has been decided yet, but here’s the scoop from TheHill.com as of February 9, 2010. At a minimum, the 2009 $3.5 million exemption and 45% rate would continue, effective January 1, 2010....

No Movement on the Estate Tax

Posted on: December 16th, 2009
Here’s a recent article on the estate tax from the WSJ.com. Not exactly objective reporting, more like an opinion piece against the "death" tax. ...

House to Vote on Estate Tax Today

Posted on: December 3rd, 2009
​The U.S. House of Representatives is scheduled to vote on the estate tax today, but even if legislation passes, Senate approval is necessary. Lots of politics involved for a tax that affects so few people. See what the Washington Post has to say....

House Passes Estate Tax Bill

Posted on: December 3rd, 2009
As expected the House voted today to extend the current $3.5 million exemption and 45% rate. The final vote was 225-200. ...

US House to Vote on Estate Tax Bill Next Week

Posted on: November 30th, 2009
​This legislation would continue the current $3.5 million exemption and 45% rate, but does not include the spousal "portability." While the bill may very well pass in the House, Senate action is uncertain. ...

Further Delay on Estate Tax “Reform”

Posted on: November 17th, 2009
​Coming as no surprise to me, anyway, an article on the website CQ Politics,House Likely to Delay Estate Tax Consideration, states that the House will likely postpone any movement on estate tax legislation until after Thanksgiving. ...

Another Estate Tax Bill Introduced

Posted on: October 23rd, 2009
On October 15, 2009, Rep. Schrader (D. Oregon) introduced "The Small Business and Family Farm Estate Tax Relief Act of 2009" ( H.R. 3841), which would "repeal carryover basis for decedents dying in 2009, and "increase the estate tax exemption to $5,000,000" and "reduce the maximum estate and gift tax rate to 45 percent" for decedents dying after December 31, 2009....

“Green Book” Proposals on Estate and Income Tax

Posted on: May 19th, 2009
President Obama’s Green Book contains proposals for modifying the GRAT rules, eliminating valuation discounts for transfers of interest in many family limited partnerships and limited liability companies, and increasing income tax rates and limiting deductions for high income taxpayers. ...

Renewable Energy and Job Creation Act of 2008 Fails

Posted on: June 14th, 2008
The Renewable Energy and Job Creation Act of 2008, the latest version of legislation featuring several tax extenders, alternative minimum tax relief and energy provisions failed to pass the Senate. ...