Monday, June 6, 2011

HR 1259 (2011-12). 112th Congress

Once again Washington, D.C. is tossing around the idea of repealing the federal estate tax. The latest news story I've seen of this effort came out last week. Rep. Diane Black (R-Tennessee) is co-sponsoring HR 1259.

HR 1259 would permanently repeal the Federal Estate Tax and Generation Skipping Tax. It also would maintain the current “step-up” treatment of capital gains, an issue of concern to many farmers.
It will be interesting to see if a bi-partisan effort will result in long-term decisions regarding the estate tax. The current law ends December 31, 2012; under the law the federal estate tax exemption level would return to $1 million on January 1, 2013.

No mater where you fall on whether to have an estate tax, operating without knowledge of future levels makes planning difficult for most clients.

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