Cummings & Lockwood

Alerts & Updates

Massachusetts Millionaire’s Tax Passed

November 11, 2022

The Massachusetts constitution requires that the income tax must be a flat tax.  On November 8, 2022, voters in Massachusetts approved a constitutional amendment for the first time in 22 years which imposes a 4% surtax on top of the state’s 5% flat tax for the portion of the annual household income exceeding $1,000,000.  The $1,000,000 threshold will be adjusted annually to reflect cost-of-living increases. 

More»

Inflation Causes Significant Increases to Federal Estate and Gift Tax Exemptions

October 18, 2022

On October 18, 2022, the IRS officially announced the inflation adjustments for 2023 for the gift and estate tax exemptions.

More»

2022 Private Clients Group Annual Update Letter

October 2022

This annual update summarizes the current status of the estate and gift tax rates and exemptions at the federal and state levels (Connecticut, New York and Florida) and highlights key provisions of these important state law developments.

More»

IRS Issues Proposed Regulations Clarifying Anti-Clawback Rules for Retained Interest Gifts

April 29, 2022

In November of 2019, the IRS issued final regulations referred to as the “Anti-Clawback” regulations that made it clear that a taxpayer who took advantage of the higher gift tax exemptions (currently, $12,060,000) available under the 2017 Tax Cuts and Jobs Act would not owe additional estate tax upon death if the exemption is lower at the time of death.  The regulation was needed since the estate tax calculation includes lifetime taxable gifts.  Otherwise, a taxpayer who made a large gift now may not pay gift tax but the estate would pay estate tax upon the taxpayer’s death if the exemption was lower at that time.

More»

The Biden Administration's Revenue Proposals Again Include Changes to the Estate and Gift Tax System

March 30, 2022

On March 28, 2022, the Biden Administration released its “General Explanation of the Administration’s Fiscal Year 2023 Revenue Proposals.”  The document again supports several drastic changes to the estate and gift tax system in addition to changes to the income tax system.

More»

Status of Remote Notarizations in New York and Connecticut

February 24, 2022

On December 22, 2021, New York joined 39 other states (including Florida) to make remote notarizations permanently legal.

More»

The Department of the Treasury Issues Proposed Regulations Implementing the Corporate Transparency Act

February 3, 2022

In December 2021, the Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury issued proposed regulations implementing certain beneficial ownership reporting requirements of the Corporate Transparency Act of 2020.

More»

IRS Raises Annual Exclusion and Gift and Estate Tax Exemptions for 2022

November 11, 2021

In Revenue Procedure 2021-45, the IRS announced its inflation adjustments to key figures for the calendar year 2022. For the first time in several years, the annual exclusion from gift tax will increase from $15,000 to $16,000 per year per donee effective January 1. 2022.

More»

2021 Private Clients Group Annual Update Letter

September 24, 2021

This annual update summarizes the current status of the estate and gift tax rates and exemptions at the federal and state levels (Connecticut, New York and Florida) and highlights key provisions of these important state law developments.

More»

New York Set to Increase Income Taxes on High Earners

April 8, 2021

Governor Cuomo and New York legislators recently announced an agreement on New York’s budget that includes a significant increase for the income tax rates that will be charged against New Yorkers with high levels of income.  The bill is expected to pass. 

More»

Here Come the Taxes…Maybe?

March 17, 2021

With the recent passage of the American Rescue Plan, President Biden’s $1.9 trillion stimulus package, it is natural to consider what kind of revenue generating legislation may be coming in the next months and years in order to pay for what has now been three separate rounds of stimulus bills to address the challenging economic conditions brought on by the Covid-19 pandemic.

More»

 

© 2024 Cummings & Lockwood LLC. All Rights Reserved.