Update In The Law
In 2023 the federal gift, estate and Generation Skipping Transfer tax applicable exclusion amounts will increase to $12.92 million per person ($25.84 million for a married couple). It is important to note that there is a sunset provision on this tax plan which means that in 2025 the above taxes will decrease to $5 million (adjusted for inflation). Therefore, those who are interested in using the entire exemption amount must take into consideration that they could be hit with a higher than anticipated tax bill if the sunset provision kicks in and there is not additional tax reform. It is also not clear how the current legislature will affect these figures and it is possible that exemption amounts may be significantly reduced. We are all anxiously awaiting to see how this will change in the coming months. Despite the fact that the federal estate tax exclusion amount is so high, the Massachusetts estate tax exclusion remains at $1 million for the time being. Additionally, the 2023 gift tax annual exclusion amount will increase to $17,000 per recipient ($34,000 per recipient for a married couple). There is some estate tax planning that can be done through the use of Trusts and if you would like to discuss this with us please feel free to give Peter Moustakis a call.
Additionally, Massachusetts voters approved a constitutional amendment authorizing an additional personal income tax on all annual income above $1,000,000 effective January 1, 2023. This includes regular wages, income from the sale of a home or business, long term capital gains, short term capital gains, and dividends. It is important to note that Massachusetts taxes short term capital gains at 12 percent, making the effective new tax rates on this income 16 percent. It is important that if you are a Massachusetts resident you reach out to your CPA to determine how this increase affects you, and what strategies are available to you to help reduce your tax liabilities, including possibly moving to New Hampshire where there is not state income tax and no estate tax liability.
What’s New With The Firm
In 2022 we updated our website to be more user friendly and to showcase our growth over the last few years. We also have begun to increase our social media footprint, so if you are on Facebook, LinkedIn or Twitter, feel free to like our pages.
We would also like to congratulate Peter Moustakis for joining the Board of Directors of the NH National Academy of Elder Law Attorneys. The Board is dedicated to assisting attorneys improve the quality of legal services provided to older adults and people with disabilities.
Update In The Law
In 2023 the federal gift, estate and Generation Skipping Transfer tax applicable exclusion amounts will increase to $12.92 million per person ($25.84 million for a married couple). It is important to note that there is a sunset provision on this tax plan which means that in 2025 the above taxes will decrease to $5 million (adjusted for inflation). Therefore, those who are interested in using the entire exemption amount must take into consideration that they could be hit with a higher than anticipated tax bill if the sunset provision kicks in and there is not additional tax reform. It is also not clear how the current legislature will affect these figures and it is possible that exemption amounts may be significantly reduced. We are all anxiously awaiting to see how this will change in the coming months. Despite the fact that the federal estate tax exclusion amount is so high, the Massachusetts estate tax exclusion remains at $1 million for the time being. Additionally, the 2023 gift tax annual exclusion amount will increase to $17,000 per recipient ($34,000 per recipient for a married couple). There is some estate tax planning that can be done through the use of Trusts and if you would like to discuss this with us please feel free to give Peter Moustakis a call.
Additionally, Massachusetts voters approved a constitutional amendment authorizing an additional personal income tax on all annual income above $1,000,000 effective January 1, 2023. This includes regular wages, income from the sale of a home or business, long term capital gains, short term capital gains, and dividends. It is important to note that Massachusetts taxes short term capital gains at 12 percent, making the effective new tax rates on this income 16 percent. It is important that if you are a Massachusetts resident you reach out to your CPA to determine how this increase affects you, and what strategies are available to you to help reduce your tax liabilities, including possibly moving to New Hampshire where there is not state income tax and no estate tax liability.
What’s New With The Firm
In 2022 we updated our website to be more user friendly and to showcase our growth over the last few years. We also have begun to increase our social media footprint, so if you are on Facebook, LinkedIn or Twitter, feel free to like our pages.
We would also like to congratulate Peter Moustakis for joining the Board of Directors of the NH National Academy of Elder Law Attorneys. The Board is dedicated to assisting attorneys improve the quality of legal services provided to older adults and people with disabilities.