2010 No Estate Taxes
I have been away, but in checking the forum, I have not seen this issue addressed. We are now in the 2nd half of 2009. Has Congress passed anything relative to Estate Taxes being eliminated in year 2010? Have they addressed 2011 when Estate Taxes will revert to the prior limitations?
Additionally, since the economy has yet to rebound, is there discussion of a 2010 waiver of RMD?
Thank you.
Permalink Submitted by Alan Spross on Wed, 2009-07-08 23:02
So far, no specific action or discussions. I believe that Congress plans to address the estate tax issue in the fall, and I think it still is a pretty good bet that -0- estate tax in 2010 will never come to pass.
With respect to the RMD issue, it has a better chance if there is no further economic or financial market recovery and a supplemental stimulus bill is considered. If so, the RMD waiver or even an increased age for the RBD are areas that can provide seniors with a slice of the benefits, particularly since Healthcare reform appears to be targeting Medicare for cuts to finance the cost of whatever bill is produced. In addition, Medicare Advantage subsidies will be slashed.
Permalink Submitted by Joseph Arsenault on Thu, 2009-07-09 16:46
Nothing has been passed yet, but signs have pointed towards the FY 2010 budget extending the current Estate tax rate and exemption through 2010 and on(this is what is in the current proposal). I have been receiving CCH updates and tax newsletters / magazines for months now all discussing the proposed FY 2010 budget and what the consensus on it is. It doesn’t seem like there will be that much opposition to extending the current rates and exemption through 2010 and on (possibly making it permanent).
While this doesn’t hold any water yet, imo what ends up being passed wont be far off from what has been proposed. Dont expect no estate tax in 2010.
Permalink Submitted by Al Fry on Thu, 2009-07-09 17:54
If they don’t do someting soon, there may be several people put on ice in December of 2009, along with many power failures in December of 2010. Of course as slow as this Congress moves, they may extend the Estate Tax retroactively sometime in 2010. Then watch the Tax Court cases swell. Of course Congress has more pressing issues to deal with currently, such as doing away with the BCS system in college football.
Permalink Submitted by Joseph Arsenault on Thu, 2009-07-09 19:52
Spot on Al
😀
Permalink Submitted by Alan Spross on Thu, 2009-07-09 21:25
In keeping with recent tradition, Congress will probably make a last minute decision this year to extend 2009 provisions through 2010, kicking the can down the road another year. Then at the very end of 2010 around the time seniors begin to curiously expire, they opt to just continue the 3.5 million exemption with occasional inflation adjustments, maintain the basis adjustment, and perhaps enable use of both spouse’s exemptions without resorting to an AB trust.
Permalink Submitted by Al Fry on Thu, 2009-07-09 21:32
That seems to be the plan, from what I read from DC. I’ll be there in Sept (to see the National’s play), maybe I can shake them up a bit.