The changes coming to income, capital gains, and gift/estate taxes will be substantial and far-reaching.
Join this webinar event, designed for fundraisers, to give you a first look at the pending storm in simple and easy to understand language.
ALL REGISTRANTS WILL RECEIVE A COPY OF THE POWERPOINT HANDOUT AS WELL AS ACCESS TO THE RECORDING.
With two tax-related bills already proposed in the Senate, and the President's promised tax increases gaining momentum, we are looking at the most sweeping changes to personal taxes since 1986, and perhaps the greatest shakeup for estate and retirement planning in many generations.
The following are the most significant changes likely to happen:
- Estate tax lifetime exemption, currently $11.7 million per person, dropping to $3.5 million per person (2009 level)
- Gift tax lifetime exemption will only be $1 million per person (2001 level)
- Earners of $400,000 or more may see their tax bracket jump to 39.6%
- Capital gains and dividend rates for earners of $1 million or more jumping to 43.4% from 23.8%
- Step-up in basis at death likely changing
In the Senate, only 51 votes are needed to pass budget reconciliation legislation and unless there is opposition from Senate or House Democrats, most of these changes are very likely to happen.
As a result of these changes, current estate plans for higher net wealth individuals will need to be reexamined and adjusted. And, many more people will need to take estate planning much more seriously. Additionally, many will reevaluate their investment strategies.
As fundraisers, particularly those involved with major gifts, you need to start preparing as Planned Giving may be a much greater factor going forward.