Part 1 of this series focused on Michael Jordan’s Revenge Tax. You can read that blog here. Part 2 will focus on how the “jock tax” raises many different multistate and national taxation issues. Let's start by looking at an example. An NFL player is under contract to obtain a bonus of one million dollars if they catch 100 passes throughout the season. The NFL player catches pass number 100 at … [Read more...] about Michael Jordan’s Revenge Tax Part 2
The Advantages of Portability
"The Advantages of Portability " by Attorney Alex Pagnotta (Audio) When a decedent dies, a federal estate tax return (IRS Form 706) is not required to be filed unless the decedent’s gross estate exceeds their remaining federal estate tax exclusion. In 2022, for someone who has not used any exclusion during their lifetime, this would be $12.06 million. Maryland also has an estate tax, as it … [Read more...] about The Advantages of Portability
Tax Law Changes for 2022
"Tax Law Changes for 2022" by Attorney Jon J. Gasior (Audio) Since 2011, the federal estate tax has changed at the beginning of each New Year. As such, it is important to review the estate tax landscape both at the federal and state level. Below, we will discuss the estate planning tax laws. First, in Maryland there is a $5 million estate tax exclusion. What that means is that if you pass … [Read more...] about Tax Law Changes for 2022
Your Estate Plan and Tax Filings
There are many taxes that we pay over our lifetime. Here is a list of taxes we see while planning and settling estates. While you are living and if your income is high enough, you will need to pay income taxes to both the Federal Government and the State of Maryland. The forms generally used to file your income tax returns are the IRS form 1040 and the MD form 502. In most cases when … [Read more...] about Your Estate Plan and Tax Filings
The Advantages of Portability
"The Advantages of Portability" by Attorney Victor Lembo When a decedent dies, a federal estate tax return (IRS Form 706) is not required to be filed unless the decedent’s gross estate exceeds their remaining federal estate tax exclusion. In 2019, for someone who has not used any exclusion during their lifetime, this would be $11.4 million. Maryland also has an estate tax, as it decoupled from … [Read more...] about The Advantages of Portability
Tax Law Changes for 2018
There are many changes for 2018. Congress passed a last-minute tax law, which the President signed the last business day before the Holidays. Congress Passes New Tax Law Last week the Senate passed the new tax law, (which had been called the “Tax Cuts and Jobs Act” and due to Senate parliamentarian objections is now ‘An Act to provide for reconciliation pursuant to titles II and V of the … [Read more...] about Tax Law Changes for 2018
End of the Year Reminders
As we approach the end of the year, we become busy with holiday celebrations, visits with family and friends, and vacation. Our to-do lists grow longer and many items and resolutions are pushed to the next year. However, it is important to keep in mind various deadlines, whose dates are not as flexible as some of our other goals. Minimum required distributions If you are age 70 ½ and … [Read more...] about End of the Year Reminders
Portability in Estate Planning
Portability was introduced under the American Taxpayer Relief Act of 2012 and is effective for married persons dying on or after January 1, 2011. It has the potential to save you greatly in estate taxes, but you must act quickly if you intend to make a portability election. Here is some background: Currently, the federal estate and gift tax exclusions are unified at 5.34 Million Dollars, … [Read more...] about Portability in Estate Planning
Who is Responsible To Pay the Estate Debt of a Deceased Loved One? (Audio)
["Who is Responsible to Pay the Debt of a Deceased Loved One?" by Attorney Brooke J. Shemer … [Read more...] about Who is Responsible To Pay the Estate Debt of a Deceased Loved One? (Audio)
Why Traditional Estate Planning May Not Be the Answer
Most estate planning lawyers, accountants, and financial advisors in the field of traditional estate planning are taught only two things: protect the clients’ material wealth from the evils of probate and taxes. Now let me ask you, just as a reality check, how do most people actually plan their estates? In our experience, they either do nothing or they create a simple Will, to look after a … [Read more...] about Why Traditional Estate Planning May Not Be the Answer
