As the year comes to a close, so does the period for tax planning for the year 2014. My partner Joe Michaels has composed a Memorandum entitled "75 Last Minute 2014 Year-End Tax Savings Tips” that you may find helpful in doing some last minute 2014 income, gift and estate tax planning, as well as of assistance in preparing your 2014 Federal, State and local income tax returns, and planning for the coming year. The Memorandum may be accessed by clicking here. The Memorandum is interactive in the sense that if you “click” on a subject in the index, it will take you directly to that subject.
The first two introductory pages review some of the overall provisions and some changes that became effective in 2014, as well as reminders regarding certain issues. The top Federal income tax bracket remains at 39.6% for 2014 and 2015, the maximum rate of tax on dividends and interest is 20% for 2014 and 2015, the gift tax annual exclusion remains at $14,000 for 2014 and 2015, but the lifetime gift/estate tax exemption rises from $5,340,000 in 2014 to $5,430,000 effective January 1, 2015. The 3.8% Medicare tax on high earners’ investment income and additional 0.9% Medicare tax added to the 1.45% already paid by a highly paid employee on his/her compensation and the earnings of “highly paid” self-employed individuals remain in place. The Summary also includes a review of the changes to the New York estate tax laws effective April 1, 2014 and advises that as of the date of this Memorandum, there are some 57 tax provisions (mostly “tax credits”) that have not been extended to 2014 and another six that will expire on December 31, 2014. It is possible that Congress may extend these credits to 2014 and beyond, so it would be wise to consult your tax advisor in future months to determine whether all or part have been extended.
Section 74 of this Memorandum includes a summary of the Patient Protection and Affordable Care Act of 2010. Most of these provisions are now in effect. Section 75 contains a description of some Offshore and Foreign Tax Provisions enacted in prior years but which still impact 2014 and future years.
If you have any questions regarding any of the income, gift or estate tax planning ideas or other provisions summarized in “75 Last Minute 2014 Year-End Tax Savings Tips,” please let us know.
Best wishes for a Happy Holiday Season and a Happy New Year.
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