The American Taxpayer Relief Act of 2012 provides no relief to trust and estate income taxes

Generally it is not a good idea to leave income inside a trust or estate at the close of a taxable year.  The reason is that trust and estate income tax rates are compressed.  An individual and a married couple does not reach the top income tax rate until they have almost $400,000.00 of taxable income.  However, a trust or estate reaches the top income tax rate at $11,950.00 of taxable income in 2013, and income above that amount is taxed at a rate of 39.6%.  For tax planning information, contact Linde Law Group today.

Matthew A. Linde
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