Re: Unified Tax Credit Question

#2 04-07-2004, 08:11 AM

"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:
- quote -

> Stuart O. Bronstein wrote:

> > So it seems to me that after 2010, as the law is now
> > written, the credit will then go back to a million.

> I was thinking that the increase from $600k to $1M via the
> credit was ALSO part of the sunsetting change. I guess that
> if it's not, my mind is full and I need to start looking at
> "cheat sheets" for all these changes. :-)

Well, I don't have my conclusion from any authoritative
source, so it could be anything. But that's the way it
looks to me.

Stu

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#1 04-05-2004, 09:48 PM

Stuart O. Bronstein wrote:
- quote -

> "D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:
> > ron wrote:

> > > If I understand correctly, in 2008 I would be able to gift
> > > $11,000 (gift credit) plus $780,800 (the unified tax credit
> > > in 2008) to a single individual. Since we don’t know
> > > what will happen to estate taxation after 2010, suppose I
> > > did gift that amount to an individual in 2008; is there any
> > > guidance as to what unified tax credit / penalty I might
> > > encounter in 2011 if they reset the credit to an amount less
> > > than $780,800 after 2010?..

> > I take it that planning to pass on in 2010 is out of the
> > question? :-)

> Are you kidding? If everybody did that, they'd put a lot of
> lawyers out of business.

> > The rollback, if it happens, will be to no less than the old
> > $600,000 (actually, a credit of $192,800). That's what it
> > was before the "sunset bill" that made the increases.
> > Therefore, plan on $611,000.00.

> That's what the basic exemption was, but at that time the
> credit was increasing. So it was $675,000 in 2000 and 2001
> (before the new provisions kicked in) and was slated to
> increase to a maximum of $1,000,000 in 2006.
> So it seems to me that after 2010, as the law is now
> written, the credit will then go back to a million.

I was thinking that the increase from $600k to $1M via the
credit was ALSO part of the sunsetting change. I guess that
if it's not, my mind is full and I need to start looking at
"cheat sheets" for all these changes. :-)

I think we need to get Congress to pass a law that tax
changes can only take effect every 10 years - in the years
whose number is divisible by 10.

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04-02-2004, 10:59 PM

"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:
- quote -

> ron wrote:

> > If I understand correctly, in 2008 I would be able to gift
> > $11,000 (gift credit) plus $780,800 (the unified tax credit
> > in 2008) to a single individual. Since we don’t know
> > what will happen to estate taxation after 2010, suppose I
> > did gift that amount to an individual in 2008; is there any
> > guidance as to what unified tax credit / penalty I might
> > encounter in 2011 if they reset the credit to an amount less
> > than $780,800 after 2010?..

> I take it that planning to pass on in 2010 is out of the
> question? :-)

Are you kidding? If everybody did that, they'd put a lot of
lawyers out of business.

- quote -

> The rollback, if it happens, will be to no less than the old
> $600,000 (actually, a credit of $192,800). That's what it
> was before the "sunset bill" that made the increases.
> Therefore, plan on $611,000.00.

That's what the basic exemption was, but at that time the
credit was increasing. So it was $675,000 in 2000 and 2001
(before the new provisions kicked in) and was slated to
increase to a maximum of $1,000,000 in 2006.

So it seems to me that after 2010, as the law is now
written, the credit will then go back to a million.

Stu

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 04-01-2004, 02:26 PM

ron wrote:

- quote -

> If I understand correctly, in 2008 I would be able to gift
> $11,000 (gift credit) plus $780,800 (the unified tax credit
> in 2008) to a single individual. Since we don’t know
> what will happen to estate taxation after 2010, suppose I
> did gift that amount to an individual in 2008; is there any
> guidance as to what unified tax credit / penalty I might
> encounter in 2011 if they reset the credit to an amount less
> than $780,800 after 2010?..

I take it that planning to pass on in 2010 is out of the
question? :-)

The rollback, if it happens, will be to no less than the old
$600,000 (actually, a credit of $192,800). That's what it
was before the "sunset bill" that made the increases.
Therefore, plan on $611,000.00.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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