Let's say I gift $100k over the current $15k allowed this year. The lifetime exemption is over $5m, and let's say my estate would be well under that figure..so no tax consequences.
My question is, what would happen if the lifetime exemption was reduced in the future to say $1m. Would that mean anything over $900k would be hit with a gift tax...or since I made the gift before the law change it would still be $1m?
lifetime gift tax exemption
Re: lifetime gift tax exemption
I believe forum rules don't allow speculation or advice based on "what-if" changes in the tax law.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. |
(Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)
Re: lifetime gift tax exemption
I don’t believe that’s the case. This is discussed frequently.
Gill
Cost basis is redundant. One has a basis in an investment |
One advises and gives advice |
One should follow the principle of investing one's principal
Re: lifetime gift tax exemption
My guess would be since all gifts over the 14,000 thresh hold require a filing, the 100,000 would reduce any future inheritance limit. If tax law was reduced to 100,000, then the one time gift would fill the limit and any additional estate funds/value would be subject to the inheritance tax at death.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” |
— Warren Buffett
-
- Posts: 13977
- Joined: Fri Mar 02, 2007 1:39 pm
Re: lifetime gift tax exemption
I agree. We discuss all the time about current vs future tax rates for the traditional vs Roth retirement account decision.
What is not allowed is discussion of pending legislation/regulations. This is because of the political and contentious nature of those discussions.
I would think that as long as this discussion is based on tax law precedent and other factors that allows someone to make a decision based on a probable basis is actionable.
I'll contribute. I don't think we know for certain. I don't believe the gift/estate tax limit has decreased (at least recently). The major increase during the 00s was supposed to revert to $1M in either 2011 or 2012, but was made permanent.
Maybe someone can find an informed article on the Net about this issue. To my knowledge, the only ex post facto application of tax laws have been limited to the prior year.