Appraise Assets for Tax Gifting Purposes

more+
less-

Appraise Assets for Tax Gifting Purposes

By Joseph M. Donegan on October 12, 2012

Many families and small business owners are moving quickly to transfer assets to loved ones while favorable tax rates are still in effect. However, those who fail to appraise gifted assets may face tax consequences if items were improperly valued.

A recent Reuters report noted that appraisers have seen a spike in business in recent months as businesses and wealthy individuals seek out services in preparation of the lucrative gift tax exemption expiring at the end of the year. The current lifetime gift exclusion of $5.12 million – or $10.24 million for married couples filing jointly – is expected to revert back to $1 million in 2013. Further, estate taxes on any amount that exceeds that limitation will be taxed at a 55 percent top rate in 2013, as opposed to the current 35 percent.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Appraisal, Gift-Tax Exemption, Year-End Planning, Year-End Tax Planning

Published In: Tax Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Joseph Donegan, Scarinci Hollenbeck | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »