Lifetime Gift-Tax Exemption Expires...
The generous lifetime gift-tax exemption in which couples can give up to
$10.24 million to descendant’s - tax free - expires at the end of 2012. The lifetime
exemption falls from $5.12 million to $1 million for individuals and from
$10.24 million to $2 million for couples - unless Congress intervenes. For
wealthy families, there’s a limited window to give sizable assets which
includes real estate, to children while avoiding a tax hit. The current
gift-tax exemption is part of the Tax Relief, Unemployment Insurance
Reauthorization and Job Creation Act of 2010. The law includes the higher
lifetime limits, as well as a relatively low 35% maximum tax rate on gifts that
exceed these limits. Without intervention of Congress, gifts over the limits
are set to hit a maximum 55% tax rate, as of January 1, 2013.
Thanksgiving Day November 22...
The U.S. markets face a holiday shortened trading week with U.S. financial
markets closed for the Thanksgiving Day holiday Thursday November 22. On Friday
November 23, U.S. markets will close early at 1:00pm Eastern Time.
Traditional “Black Friday” is starting early this year as some retailers are
opening their doors on Thanksgiving Day, in an attempt to lock in the early
shoppers. Retailers such as Target, Wal-Mart and Toys R Us are receiving
petitions from employees, calling for Thanksgiving Day, off. Thanksgiving Day
starting at 8:00pm, Sears and Toys R Us will open their doors for early Black
We take this time to wish all our avid readers and their families a safe and
enjoyable Thanksgiving Day Holiday with friends and loved ones. Happy
Fiscal Cliff Talks Optimistic…
Ongoing talks that a deal can be reached to avert the “fiscal cliff” are
reportedly optimistic per President Barack Obama and House Minority Leader
Nancy Pelosi (D., Calif.) on Sunday. “I am confident we can get our fiscal
situation dealt with,” Obama told a news conference in Bangkok, where he is
starting a three-nation trip. “Just to close loopholes is far too little
money,” Pelosi told ABC’s “This Week” when asked about the option of capping
deductions and closing some loopholes without changing the current tax rates
for the wealthiest Americans. Republicans said they are willing to consider new
revenue such as closing loopholes, but have not endorsed tax hikes on the
wealthy, as of yet. Representative Tom Price (R, Ga.) on Sunday rejected the
notion of increased tax rates on the highest earners, stressing “pro-growth”
policies to broaden the tax base, instead. U.S. Secretary of State Hillary
Clinton said Saturday that reaching an agreement to resolve America’s budget
woes and the impending “fiscal cliff” is vital to its international leadership
role. Clinton added that the “full faith and credit of the United States should
never be in question” and that the political parties in the U.S. are committed
to bolster American national security.
Wall Street saw a surge to the upside on Friday after participants involved
in talks with the President, expressed their optimism as well. Negotiators are
slated to tackle the ‘fiscal-cliff’ issue into the upcoming holiday week with
Congress is in recess.
November 19, 2012