Repeal Most Estate Taxes
Current Status: FalteringAs of
"The Trump Plan will repeal the death tax, but capital gains held until death and valued over $10 million will be subject to tax to exempt small businesses and family farms. To prevent abuse, contributions of appreciated assets into a private charity established by the decedent or the decedent’s relatives will be disallowed."
The Republican tax bill of December 2017 did not repeal the estate tax, but did increase the threshold limits from $5 Million to as much as $11.2 Million, indexed for inflation. The threshold will revert to $5 Million if the law is allowed to sunset after 2025. The Joint Committee on Taxation estimates the number of taxable estates would drop from 5,000 under current law to 1,800 under the new law in 2018. By comparison, 52,000 estates paid the tax in 2000 when the exemption was $675,000.
Furthermore, it appears that further avoidance of taxes on gifts to charity have not only not been disallowed but may have opened a window of opportunity for wealthy estates to avoid the effects of future changes in the law by giving gifts sooner.