June 12, 2019
The statement of there only being two guarantees in life - “death and taxes” is a familiar phrase often heard around tax time or when any event pertains to one or the other. However, for some the combination of both can have an effect on the inheriting parties from a wealthy individual. Coupled together, when death leads to taxes, the term estate tax becomes a reality and depending on the amount of monies involved and how or why people are receiving it, there could be some tax owed.
Fortunately, the estate tax from the Internal Revenue Service has been periodically increasing over the course of a few years. In fact, the most recent modifications enacted by the Tax Cuts and Jobs Act significantly reduces the amount of American families who will be impacted by the requirements from any estate tax. Already a limiting application, the latest changes boost the amounts and limits the families responsible for having to deal with these issues.
For 2019, estate taxes apply on amounts of gross assets exceeding $11.4 million and nothing less. The significant amount of money and inheritances immediately eliminates a vast majority of American families as these particular types of taxes are only applied to the insanely wealthy. Increased from $11,180,000 only a year prior the changes jumped roughly $6 million from 2017 and these modifications not only assisted a majority of wealthy individuals and families but also reduced the amount of people impacted by estate taxes in general.
Those individuals who may have gross amounts exceeding the estate tax limit typically have a vast understanding, or someone who assists with their financial matters. These people also may have much of their wealth involved with unrealized gains on stocks or some other type of investment tool. This amount of wealth generally has not incurred any taxation and through the continued transfer may not until it is sold.
Another feature of the estate tax also revolves around the amounts being tied to individuals specifically. For couples, the estate tax amounts are raised to double the amounts of those applied to individuals. Two people pushes the exceeding amount to over $22.8 million in terms of assets, of which any amounts underneath can be left without those who inherit it having to pay any type of taxes on the acquisition.
Fortunately, the tax experts at Bloch Rothman and Associates are ready and willing to assist if you should fall into any of the above categories. In addition to providing a quality tax service and helping to navigate the intricacies of an estate, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!