Estate Taxes

Estate Taxes

David Sparks Ph.D.
David Sparks Ph.D.
Usually around this time of the year, I and undoubtedly a lot of you listeners out there in radio land, are thinking a whole lot about the April 15th deadline and taxes. This year, because of the coronavirus, we have all been given a reprieve for a few months nonetheless…as a famous American said… nothing can be said to be certain except death and taxes. Who said that? I’ll tell you in a minute. But indeed, traditionally death and taxes have been linked together in the form of estate taxes.

But the tax law, as President Trump said when he signed it way back in December 2017, “it makes the vast majority of family farms and small businesses exempt from the estate tax.”

Although one expert says under the old law, very few people were subject to the estate tax. Iowa State University tax expert Kristine Tidgren says under the previous law, you could die owning property worth up to 5.6 million dollars and still not owe federal estate tax.

And under the new law, “you can die with eleven point two million dollars in property and your estate will not owe any estate tax on that amount.” So as Tidgren says, “it's going to pretty much eliminate the concern about estate tax.”

Now back to the question. Who said nothing could be said to be certain, but death and taxes? You're right. Benjamin Franklin.

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