Initial free consultation
Top tax rate of rate of 37% applicable to income over $600,000 for married those married filing jointly and $500,000 if filing as a single individual
Personal exemption eliminated.
"Pease" phase out - eliminated.
Deduction for state and local taxes - $10,000 cap deduction. No phase out. Some believe that if real property taxes are paid as a charitable deduction, the new 60% of AGI cap will apply. We must await IRS Regs. and/or a Tax Court case to see if this is valid.
Mortgage interest deduction limited to $750,0000 for the purchase of a resident (old mortgages grandfather); may include home equity only if used to buy or improve a qualified residence.
Itemized deductions, other that as noted are not allowed.
Dependent Tax Credit increased from $1,000 to $2,000. A non-child dependent is limited to $500. Phased out beginning at $400,000 MF and $200,000 filing single.
AMT 28% tax rate. Exemption increased to $109,400 (MF), $$70,300 single. Phased out beginning at $1,000,000.
There is surprisingly no change in the capital gains tax rate of 15%(LT)/20(ST)% plus the addition of the health care tax rate of 3.7%
TRUSTS & ESTATES
The Estate Tax exemption is approximately 11.2 million (indexed for inflation) through 2025. The maximum tax rate is 40%
The step-up in basis remains. As NJ does not have a gift tax, some consideration must be given whether pre-death gifts are more prudent than securing a step-up in basis from a bequest.
The Federal gift tax annual exclusion is $15,000 for each donee per year. There is no change.
The top income tax rate for a trust is 37% when the accounting income reaches $12,500. This is a reduction from 39.6%
A fiduciary, be that person be a personal representative under a Will, a legal guardian, a trustee, a medical representative under an an Advanced Medical Directive or an agent under a Durable Power of Attorney needs to be a person or a corporate fiduciary that you trust.
A personal representative, a legal guardian of your parent or minor or disabled child and a trustee are entitled to be paid commissions for services provided. All fiduciaries are entitled to be reimbursed for expenses paid, assuming your estate has sufficient funds to do so.
Care should be taken in selecting a fiduciary that the person selected will care for your minor child, a disabled child or parent, or manage your medical care and/or financial affairs properly.
Within the areas of practice, I provide you with the personal service(s) you require. The initial meeting is a free consultation.
I have have been admitted in New Jersey since 1977, practicing in Essex, Morris and Union Counties . My current practice emphasizes estate planning, estate litigation, trusts (including pet trusts, irrevocable trusts and Qualified Residential Trusts, and qualified charitable trusts), disputes between beneficiaries of a trust, guardianships, and business matters (formation, employment agreements, shareholder /member agreements, liquidations, mergers and business disputes), prenuptial agreement.
Martin L. Bearg, Esq. has earned an LL.M. in Tax and taught undergraduate accounting majors both contract law and tax law. During his tenure he worked in the tax dept. of a regional CPA firm. Mr. Bearg has also taught paralegals contract law and the preparation of wills and trusts. He has also served as chair of the NJ State Bar Assoc. Real Property Trust & Estate Law Section and Chair of the West Essex District Ethics Committee. Martindale & Hubble has awarded an AV Rating, to Mr. Bearg, SuperLawyer has named him a Super Lawyer for Trusts & Estates and he has also been named as a Top Attorney for Trusts and Estates. Mr. Bearg has provided many lectures for the New Jersey Institute for Continuing Legal Education and been a continuing author for articles and treatises.
I love my clients, so make an appointment to discuss your needs and/or concerns.
160 South Livingston Avenue, Suite 208, Livingston, New Jersey 07039, United States
Monday - Friday: 9am - 6:30pm by appointment
Saturday: By appointment