The Ever-Popular Estate (Death) Tax

Here it comes again!

Four members of the House Ways and Means Committee introduced legislation designed to stop estate tax rates from rising at the end of 2010. Sponsored by Rep. Shelley Berkley (D-NV), the Estate Tax Relief Bill of 2009 (HR 3905) would gradually increase the current exemption from $3.5 million to $5 million by 2019, and index it against future inflation. The measure would also reduce the estate tax rate from 45 percent to 35 percent over the same ten-year period.

Berkley's legislation, which was introduced on October 22, was co-sponsored by Reps. Kevin Brady (R-TX), Artur Davis (D-AL), and Devin Nunes (R-CA). The bill does not include a revenue offset. Under current law, the estate tax would be eliminated for one year in 2010, but return at a 55-percent tax rate for estates over $1 million in 2011.

House Majority Leader Rep. Steny Hoyer (D-MD) recently remarked that the estate tax issue will be resolved before its expiration at the end of this year (but after health care reform is completed). Who knows if the Berkley proposal will be the version of estate tax reform that will be implemented.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
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