A donor who makes a contribution to charity can take an income tax deduction for the value of the gift. The deduction is available only to taxpayers who itemize their deductions. It is not available if the taxpayer takes the standard deduction. The effect of the charitable deduction is to reduce the donor’s cost of… Read More
A number of income tax provisions are slated to expire at the end of this year. Many of these tax breaks have been extended in the past, so it’s possible Congress could extend them again over the next few months – but you never know. 1. Teachers’ classroom expense deduction. Teachers can deduct up to… Read More
It’s Not Too Late – Get Your Deductions for Charitable Giving I resolved to stop accumulating and begin the infinitely more serious and difficult task of wise distribution. – Andrew Carnegie At the end of the calendar year, many people think about making charitable gifts in order to obtain charitable deductions on their 2012 income… Read More
Part III of this series on the Pennsylvania inheritance tax deals with the taxation of future interests, the sole use trust election, the family exemption and the early payment discount. The Pennsylvania inheritance tax is an excise tax on the receipt of inherited property by a beneficiary. The rate that applies depends on the beneficiary’s… Read More
Inheritance Tax Treatment of Gifts Transfers made by a decedent within one year of death are brought back into the estate for the purposes of the Pennsylvania Inheritance Tax. You can’t avoid the inheritance tax by giving away everything you own right before you die. There is an exemption of $3,000 per donee per calendar… Read More
Effective for decedents dying after July 9, 2013, there is a new inheritance tax exemption for qualified family-owned businesses. The law provides: “A transfer of a qualified family-owned business interest to one or more transferees is exempt from inheritance tax, if the qualified family-owned business interest . . . .continues to be owned by a… Read More
Pennsylvania has an inheritance tax which is an excise tax on the receipt of inherited property by a beneficiary. Rates depend on relationship For property passing to spouses, zero percent. Prior to 1995, transfers passing to spouses were taxable at the six percent rate. This was a very controversial tax and was finally repealed… Read More
You have probably heard that a safe deposit box is “sealed” when the owner dies. This is not true in Pennsylvania. Safe deposit boxes are not sealed. In fact, the box is the safest place for your will, life insurance policies, stock certificates, and other valuables. Far from being sealed, the box is opened, following… Read More
In anticipation of a government shutdown, the Treasury Department announced on September 27 procedures for the IRS and other agencies under its jurisdiction in the event of a government shutdown after the end of fiscal year (FY) 2013. Only 9 percent of the IRS’s personnel are allowed to work. The IRS website states: “Due to… Read More
Last Thursday, August 29, 2013, the Treasury Department issued Revenue Ruling 2013-17 which provides that for all federal tax purposes, the terms “spouse,” “husband and wife,” “husband,” and “wife” include an individual married to a person of the same sex if the individuals are lawfully married in a state (or foreign country) whose laws authorize… Read More