• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
desktop-logo
Client Login
Pay Now
(201) 692-1600
  (201) 692-1600
Tsamutalis & Company

Tsamutalis & Company

Certified Public Accountants (CPA's)

  • About Us
    • Our Staff
  • Tax Services
    • Tax Preparation
    • Tax Planning
    • IRS Audit Representation
    • Non-Filed Tax Returns & Back Taxes Owed
    • IRS Liens & Levies
    • IRS Payment Plan & Offer In Compromise
  • Business Services
    • Small Business Accounting
    • Reviews & Compilations
    • New Business Formation
    • Cash Flow Management
    • Bank Financing
    • Business Valuation
    • Strategic Business Planning
    • CFO Services
  • Services for Individuals
    • Personal Financial Planning
    • Estate Planning
  • Informational
  • Blog
  • Contact Us
  • Client Login
  • Pay Now
  • Show Search
Hide Search

Changes To The Estate And Gift Tax Regulations

Vincenzo Bruzzesi | February 7, 2020 | Estate and Gift Tax

The Tax Cuts and Jobs Act of 2017 has brought about a dramatic, albeit temporary, change to the estate and gift tax regulations. As a result of the new law, the exemptions for the transferred property have been increased from $5 million, under the previous law, to $10 million for individuals. For married couples filing jointly, the exemption has increased to $22.4 million. The gift tax exclusion has now been raised to $15,000 annually.

Married couples are allowed to gift a total of $30,000 per recipient of gift. This gift tax exclusion has been a helpful tool for the avoidance of estate taxes by allowing individuals to make gifts of wealth to others during someone’s lifetime. As a result of the new estate tax exemption being increased so dramatically, gifting to avoid paying estate tax may no longer be necessary, at least for the time being. 

Carrying over from the previous year, the rule regarding the increase in basis for inherited property will continue in its current form. A person who inherits appreciated property will have their basis in the property increased to the fair market value of the asset on the date of the decedent’s death. This rule offers a great tax benefit to heirs because any pre-death unrealized gain on the asset becomes exempt from taxation. For instance, a grandfather bought stock in Coca Cola in 1965 for $1,000. He wants to leave those shares to his grandson when he dies.

The fair market value on the day of the grandfather’s death is $125,000. Had the grandfather sold his shares before he died, he would have a taxable capital gain of $124,000. Because the grandson inherits the shares, his basis in the shares becomes $125,000. If the grandson were to sell the shares the next day for $125,000, then he would pay no tax, because he would not have again.  

If you need help with your taxes, please contact or call us at (201) 692-1600.

Primary Sidebar

Recent Posts

  • April 2022 Tax Deadlines for Business
  • Are Economic Injury Disaster Loans (EIDL) Taxable in New Jersey?
  • How Does The PPP Loan Affect Your Small Business Taxes in New Jersey?
  • Many Overlooked Tax Deductions for Small Businesses in New Jersey!
  • Everything You Need to Know About Getting Your New Jersey Small Business Ready For Year End Taxes!

Archives

  • March 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • December 2020
  • June 2020
  • May 2020
  • March 2020
  • February 2020
  • January 2020
Get In Touch

Submit your information and one of our advisors will get in touch with you within 24 hours for a complimentary initial consultation.

Tsamutalis & Company, LLC is a boutique accounting firm that offers cutting edge accounting, tax and advisory services with a penchant for unparalleled client service.

Follow Us
facebooktwitterlinkedin
Navigation
  • Home
  • About Us
  • Informational
  • Client Login
  • Blogs
Contact Us

Headquarters
110 Pleasant Avenue, Upper Saddle River, NJ 07458

Branch
101 Cedar Lane, Suite 302 Teaneck, NJ 07666

(201) 692-1600
201-692-7755

stalis@taliscpas.com

Visit Us
Copyright © Tsamutalis & Company, LLC
Website design and development by Organical-The SEO Experts