November 13, 2014

The Internal Revenue Service recently announced inflation adjustments that will have an impact on more than 40 tax provisions. Some of the key impacts are worth noting for those who are engaged in the tax planning process. It’s critical to stay involved in your tax planning with reviews on at least a yearly basis simply because of the possible changes handed down from the federal level.

Although it’s a good guideline to always be in touch with strategies that could help maximize your assets and minimize taxes, check in with your tax planning specialist toward the end of the year so that your plans are structured appropriately for any incoming changes for the forthcoming tax year.

Here are some of the most relevant changes that could influence your planning tactics:

• For decedents who pass away during 2015, their estate will have a basic exclusion amount set at $5,430,000, an increase from $5,340,000.
• The annual gift exclusion remains the same, sitting at $14,000.
• Non-U.S. citizen spouses can benefit from an adjustment in the exclusion from tax on a spousal gift, since that is up to $147,000 from $145,000.

There’s never been a better time to discuss your current planning strategies and have them evaluated to best meet your needs. For a comprehensive review of your tax-saving strategies or a discussion about how to get started, contact Shah & Associates at 732-521-9455.