With a little more than nine months left in 2009, we wonder whether we will get to estate tax repeal in 2010 or whether the repeal would be made permanent for years after 2010. As it stands, if nothing is done, the estate tax is repealed for 2010. The gift tax will remain (there will be a $1 million per person lifetime exemption from the gift tax, and the annual gift tax exclusion will still be available to make transfers). For income tax purposes, the "basis step-up" at death will be limited in 2010. To change this, Congress must pass a new law before the end of 2009 so that the estate tax is not repealed in 2010. While there is some talk about making this happen, no one knows what action Congress will take.
Time to Repeal? Andrew M Katzenstein California CPA; Mar/Apr 2009; 77, 8; Docstoc pg. 18 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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