Three Months Left for Tax Exemptions
Updated: Nov 18, 2021
Congress is currently considering proposed changes to tax law that, while less onerous than the tax proposals from the White House, would tighten tax loopholes and eliminate tax-favorable strategies. The window to utilize many of these strategies is from now through the end of 2021. The IRS has already stated that it will not “claw back” any tax benefits after the law changes if taxpayers use these tax strategies correctly now.
The current exemption from federal gift and estate tax is at an all-time high ($11.7 million per person), but if Congress passes the current proposed law, the exemption will only be $6 million beginning on January 1, 2022. Thus, you have three months to remove $11.7 million worth of assets from your taxable estate ($23.4 million for a married couple), before the opportunity reduces by almost 50%.