Gift Tax Exemptions Expiring

For thoses interested in gifting assets to you heirs, you need to take a look at what the gift tax rates are now versus what they will be on Jan. 01,2012. In 2010 congress enacted a 5 million dollar personal and 10 million dollar couples exemption on gift taxes with a 35% rate after that. Come Jan 1 the rate will snap back to 1 million personal, 2 million per couple with a 55% rate after that. With the recent runup in land values in Texas, these SnapBack rate will have a profound effect on the ability of Texas land owners to keep assets in the family.

Get with your accountant and tax attorney soon or Uncle Sam will be glad to take the fruits of your labor!

If Obama is re-elected, I think you can count on the higher tax rate staying in place. I believe Romney will settle somewhere lower, quite possibly at what is afforded this year.