TaxEsqBlog -by Ronald J. Cappuccio, J.D., LL.M.(Tax)

The death tax, as many refer to the Estate Tax, was changed earlier in the decade so that in 2009 it would impose a tax rate of 45 percent to the estates of people who die with more than $3.5 million in assets. Before the law was changed — back in 2001 — the death tax had applied a tax rate up to 55 percent on estates in excess of $1 million. Now, without action on the part of Congress to set up a plan or new law for the estate tax, in 2010 there is no tax on estates of persons dying this year. In 2011, however, the law will revert back to how it existed before the 2001 law change, with a $1 million exemption and up to 55 percent tax on the deceased’s assets following a death. Under the 2009 law, just 6,000 estates throughout the country would have had to pay the estate tax. In 2011, when all estates worth more than $1 million will be subject to the death tax, more than 61,000 estates could be affected. Note many States "decoupled" with the Federal Estate Tax Exemption and ap...

The World Bank's Doing Business 2010 report lists Singapore, New Zealand and Hong Kong as the top 3 places to do business in the world. The US Ranks number 4. The US's strengths are employing workers, protecting investors and getting credit (this last item makes me wonder about the difficulties in other countries!) The U.S. is closely followed by the U.K, Denmark, Ireland, Canada and Australia. The full report is on our Extranet . If you do not have a sign-on, call us at 856 665-2121.

Existing Home Sales Increase in October In October, existing home sales rose by 10.1% and are now 23.5% above the year-ago rate. Sales were at a seasonally adjusted annual rate of 6.10 million, up from 5.54% in September and a 4.94 million pace a year ago. Existing single family home sales rose by 9.7% to a 5.33 million pace, while condo sales soared by 13.7% to a seasonally adjusted annual rate of 770,000. Click Here for full article.

Congress has not fixed the Estate Tax. The current estate tax rate is 45 percent with an exemption level of $3.5 million for individuals and $7 million for couples. Unless something is done, in 2010 the rate and exemption level will fall to zero and then jump up to 55 percent and $1 million, respectively, in 2011.

States Attack Business! In order to collect more money to pay for their profligate spending many states are hiring collectors and placing judgments against taxpayers who owe taxes. Many states are trying to declare businesses as being resident of their state and therefore requiring them to register and pay taxes with the state. New York is leading the attack, but others are quickly following suit. Full Article....

The New Home Buyer Credit is Extended! First time home buyers receive a $8000 credit for purchase made before April 30, 2010. Existing homeowners who have lived in their home more than 5 years (out of the last 8) can get a $6500 credit. The credit is for couples with Adjusted Gross Income of less than $250,00 ($125,000 for individuals.) The house purchased must be less than $800,000 The purchaser must be over 18 If the house is purchase prior to the tax return filing, it may be considered as purchase prior to December 31 of the previous year and included in that years tax return.

IRS Employee Going to Jail for Stealing Money from Mail! An IRS employee in Kansas City opened taxpayer mail and stole cash payments . Even though she is going to jail, the poor victims are out of money! This should act as a reminder to NEVER MAIL CASH especially to the government,