Estate Tax – DougFreemanCPA.com

Watch out for “income in respect of a decedent” issues when receiving an inheritance

Leave a Comment / Estate Planning, Estate Tax, Income In Respect Of A Decedent (IRD), Income Tax, Inheriting Money / Douglas Freeman

Most people are genuinely appreciative of inheritances, and who wouldn’t enjoy some unexpected money? But in some cases, it may turn out to be too good to be true. While most inherited property is tax-free to the recipient, this isn’t always the case with property that’s considered income in respect of a decedent (IRD). If […]

Watch out for “income in respect of a decedent” issues when receiving an inheritance Read More »

Don’t overlook taxes when contemplating a move to another state

Estate Tax, Federal Income Tax, Federal Taxes, Income Tax, Individual Income Tax, Local Taxes, Taxes 2023 / Douglas Freeman

When you retire, you may think about moving to another state — perhaps because the weather is more temperate or because you want to be closer to family members. Don’t forget to factor state and local taxes into the equation. Establishing residency for state tax purposes may be more complex than you think. Pinpoint all

Don’t overlook taxes when contemplating a move to another state Read More »

Plan now for year-end gifts with the gift tax annual exclusion

Estate Planning, Estate Tax, Gift and Estate Tax, Gift Tax / Douglas Freeman

Now that Labor Day has passed, the holidays are just around the corner. Many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any

Plan now for year-end gifts with the gift tax annual exclusion Read More »

Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis”

Assets, Estate Planning, Estate Tax, Federal Estate Tax, Stocks, Tax Planning / Douglas Freeman

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. How do the rules work? Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death

Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis” Read More »

There’s a favorable “stepped-up basis” if you inherit property

Estate Planning, Estate Tax, Gift and Estate Tax, Real Estate / Douglas Freeman

A common question for people planning their estates or inheriting property is: For tax purposes, what’s the “cost” (or “basis”) an individual gets in property that he or she inherits from another? This is an important area and is too often overlooked when families start to put their affairs in order. Under the fair market

There’s a favorable “stepped-up basis” if you inherit property Read More »

Don’t forget income taxes when planning your estate

Estate Planning, Estate Tax, Federal Estate Tax, Gift and Estate Tax, Income Tax / Douglas Freeman

As a result of the current estate tax exemption amount ($12.06 million in 2022), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. But now, because many estates won’t be subject to estate tax, more planning can be

Don’t forget income taxes when planning your estate Read More »

Your estate plan: Don’t forget about income tax planning

Capital Gains, Estate Planning, Estate Tax, Federal Gift Tax, Federal Income Tax, Gift and Estate Tax, Gift Tax, Income Tax / Douglas Freeman

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted

Your estate plan: Don’t forget about income tax planning Read More »

When inheriting money, be aware of “income in respect of a decedent” issues

(IRD) Income from a Descendent, Estate Tax, Federal Estate Tax, Inheriting Money, IRA, Itemized Deduction / Douglas Freeman

Once a relatively obscure concept, “income in respect of a decedent” (IRD) may create a surprising tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there may be ways to minimize or even eliminate the IRD tax bite. Basic rules. For the most part, the property

When inheriting money, be aware of “income in respect of a decedent” issues Read More »

Factor in taxes if you’re relocating to another state in retirement

Estate Tax, Federal Taxes, Income Tax, Local Taxes, Personal Residence, Retirement, State Tax, Tax Planning / Douglas Freeman

Are you considering a move to another state when you retire? Perhaps you want to relocate to an area where your loved ones live or where the weather is more pleasant. But while you’re thinking about how many square feet you’ll need in a retirement home, don’t forget to factor in state and local taxes.

Factor in taxes if you’re relocating to another state in retirement Read More »

Planning for year-end gifts with the gift tax annual exclusion

Estate Tax, Gift and Estate Tax, Gift Tax, Tax Planning, Tax Savings / Douglas Freeman

As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or

Planning for year-end gifts with the gift tax annual exclusion Read More »