Have you addressed what the IRS did in March of 2023 namely categorizing ANY assets in a Trust as a "taxable asset', including Irrevocable Trusts. This made news about a month ago. Seems the IRS kept it quiet. The reports also stated the IRS is dropping the Estate Tax limit from just over 12 million to just 6 million in a year. My Estate is too small to care about that but the "taxable Assets" in a Trust caught my attention. Referring to IRS Rule 2023-2.
To understand this clearly, I want to have a scenario. Year 2023, I gift to my son, 17,000 + 12.92 million. So I would have no tax. Then in 2024, I gift the annual gift exclusion +1 million dollars. In 2024, would I be subject to gift tax on the $1 million?
Depends on the 2024 exemption amount based on inflation. If inflation increases exemption to $14 million, no taxes. If no increase in exemption, then $1 mil will be taxed. Talk to an attorney.
Great stuff as always. You live in a Republican state b/c you call it "Trump's tax cuts." I live in California. I call it "Trump's raising of my taxes." Not political. He punched us in the mouth hard with the deductions he removed.
Have you addressed what the IRS did in March of 2023 namely categorizing ANY assets in a Trust as a "taxable asset', including Irrevocable Trusts. This made news about a month ago. Seems the IRS kept it quiet. The reports also stated the IRS is dropping the Estate Tax limit from just over 12 million to just 6 million in a year. My Estate is too small to care about that but the "taxable Assets" in a Trust caught my attention. Referring to IRS Rule 2023-2.
To understand this clearly, I want to have a scenario.
Year 2023, I gift to my son, 17,000 + 12.92 million. So I would have no tax.
Then in 2024, I gift the annual gift exclusion +1 million dollars. In 2024, would I be subject to gift tax on the $1 million?
Depends on the 2024 exemption amount based on inflation. If inflation increases exemption to $14 million, no taxes. If no increase in exemption, then $1 mil will be taxed. Talk to an attorney.
Great stuff as always. You live in a Republican state b/c you call it "Trump's tax cuts." I live in California. I call it "Trump's raising of my taxes." Not political. He punched us in the mouth hard with the deductions he removed.