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Another Attempt to Repeal Death Tax Proposed
USAgNet - 01/16/2017

Legislation to permanently repeal the federal estate, gift and generation-skipping taxes was introduced last week in the House. Farm groups strongly supports the measure, known as the "Death Tax Repeal Act."

The measure was sponsored by Mac Thornberry, R-Texas. The estate tax is levied on the net value--less an exemption--of an owner's assets transferred at death to an heir or heirs. For the 2016 tax year, the exemptions for the estate, gift and generation-skipping taxes are $5.45 million for an individual and $10.9 million for couples.

Transferred estates valued at more than those figures are subject to a maximum tax rate of 40 percent on the amount of assets above those levels. Individuals and couples who give property during their lifetimes also are subject to the top tax rate of 40 percent for "gifts" that exceed the lifetime exemption amounts. But individuals and couples for 2017 may make gifts of up to $14,000 and $28,000, respectively, without reducing their lifetime exemption amounts, which for 2017 are $5.49 million and $10.98 million.

The generation-skipping tax applies to gifts and transfers in trust to, or for the benefit of, unrelated persons who are more than 37.5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren. The top tax rate of 40 percent is applied only if such gifts or transfers avoid the gift or estate taxes.


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