TOOLS AND TECHNIQUES OF ESTATE PLANNING 15 TH EDITION 2012 Supplement p. ix. In 2012 the estate, gift, and generation-skipping tax exemption amount is $5,120,000. Chapter 1 pp. 2-3, 6. In 2012 the estate tax exemption equivalent amount is $5,120,000. pp. 12-13, 18 In 2012 the estate, gift, and generation-skipping tax exemption amount is $5,120,000. The annual gift tax exclusion amount is $13,000. p. 13 The Qualified Family-Owned Business deduction is not available for decedents dying in 2004 to 2012. p. 25 In 2012 the Accumulated Earnings Tax remains at 15%. p. 27 In 2012 the threshold at which unearned income is taxed at a parent s rate for purposes of the kiddie tax is $1,900. p. 38 In 2012 the annual gift tax exclusion amount is $13,000. Updated checklists are available on our website. Chapter 8 pp. 112-113 In 2012 the estate tax exemption equivalent amount is $5,120,000. Chapter 9 p. 123 In 2012 the estate tax exemption equivalent amount is $5,120,000. Chapter 10 p. 132 In 2012 the estate tax exemption equivalent amount is $5,120,000. Chapter 11 p. 139 In 2012 the estate tax exemption equivalent amount is $5,120,000. Chapter 15 pp. 173, 182, 185 In 2012 the estate tax exemption equivalent amount is $5,120,000. p. 183 In 2012 the unified credit is $1,772,800. Chapter 16 pp. 187-188 In 2012 the dollar amount used to determine the 2 percent portion under Code section 6166 increased to $1,390,000.
pp. 190-191 In 2012, the estate tax exemption equivalent amount is $5,120,000 and the unified credit is $1,772,800. Chapter 17 pp. 196, 198, 223 In 2012 the estate and gift tax exemption equivalent amount is $5,120,000. pp. 197-198, 210-212, 218, 221 In 2012 the annual gift tax exclusion amount remains at $13,000. p. 218 In 2012 the annual gift tax exclusion for gifts to a non-u.s. citizen spouse is $139,000. pp. 220, 223 In 2012 the unified credit is $1,772,800. Chapter 18 pp. 227-230, 232 In 2012 the GST exemption amount is $5,120,000. Chapter 20 pp. 255-258 In 2012 the annual gift tax exclusion for gifts to a non-u.s. citizen spouse is $139,000. Chapter 22 p. 266 In 2012, the kiddie tax threshold remains at $950. pp. 267, 272, 274, 276 In 2012, the annual gift tax exclusion remains at $13,000. p. 270 In 2012, the annual gift tax exclusion for gifts to a non-u.s. citizen spouse is $139,000 pp. 270, 274 In 2012 the estate and gift tax exemption equivalent amount is $5,120,000. p. 275 In 2012, the standard deduction for dependents remains the greater of (1) $950, or (2) $300 plus earned income. In 2012, a single person s standard deduction is $5,950. Chapter 23 p. 279 In 2012 the annual gift tax exclusion remains at $13,000. p. 280 In 2012 the standard deduction for dependents remains the greater of (1) $950, or (2) $300 plus earned income. Also in 2012, the amount of unearned income that will be taxed at the child s rate will also remain $950. Chapter 24 pp. 283-85, 288, 295, 299 In 2012 the Unified Credit is $1,772,800 and the Applicable Exclusion is $5,120,000. P. 289 In 2012 the threshold at which unearned income is taxed at a parent s rate for purposes of the kiddie tax remains at $1,900. Also in 2012, the highest income tax rate for single persons starts at a taxable income of $388,350, while the top income tax rate for trusts starts at a taxable income level of $11,650. Chapter 25 Copyright 2012 The National Underwriter Company 2
pp. 302, 304 In 2012 the annual gift tax exclusion remains at $13,000. p. 304 In 2012 the threshold at which unearned income is taxed at a parent s rate for purposes of the kiddie tax remains at $1,900. Chapter 26 p. 307 In 2012 the combined unified credit equivalent is $10,240,000. p. 309 In 2012 the estate tax exemption equivalent amount is $5,120,000. Chapter 27 p. 320 In 2012 the estate and trust tax brackets are as follows: not over $2,400 15% Over $2,400 but not over $5,600 $360 plus 25% of excess Over $5,600 but not over $8,500 $1,160 plus 28% of excess Over $8,500 but not over $11,650 $1,972 plus 33% of excess Over $11,650 $3,011.50 plus 35% of excess Chapter 28 p. 328 In 2012, the highest income tax rate for single persons starts at a taxable income of $388,350, while the top income tax rate for trusts starts at a taxable income level of $11,650. p. 330 In 2012 the combined unified credit equivalent is $10,240,000. Chapter 29 p. 337 In 2012 the combined unified credit equivalent is $10,240,000. p. 338 In 2012 the estate tax exemption equivalent amount is $5,120,000. Chapter 31 pp. 365, 367, 372 In 2012, the annual gift tax exclusion remains at $13,000. pp. 369, 372 In 2012 the estate tax exemption equivalent amount is $5,120,000. Chapter 35 pp. 410-411 In 2012 the threshold for cash basis taxpayers to use the AFR is $3,813,800. Chapter 37 p. 435 In 2012, the annual gift tax exclusion remains at $13,000. Chapter 39 p. 445 In 2012 the threshold at which unearned income is taxed at a parent s rate for purposes of the kiddie tax remains at $1,900. Chapter 43 Copyright 2012 The National Underwriter Company 3
p. 485 [Errata: In 2011 the threshold at which unearned income is taxed at a parent s rate for purposes of the kiddie tax was $1,900.] In 2012 the threshold at which unearned income is taxed at a parent s rate for purposes of the kiddie tax remains at $1,900. Chapter 45 p. 512 In 2012, the annual gift tax exclusion remains at $13,000 and the estate tax exemption equivalent amount is $5,120,000. Chapter 48 p. 549 In 2012 the tax bracket for Married Individuals Filing Jointly is as follows: Tax on Excess 0 to $17,400 0 10% $17,400 to $70,700 $1,740 15% $70,700 to $142,700 $9,735 25% $142,700 to $217,450 $27,735 28% $217,450 to $388,350 $48,665 33% $388,350 to $105,062 35% p.550 In 2012 the annual gift tax exclusion remains at $13,000. Chapter 50 p. 570 In 2012 the maximum amount that may be contributed to a defined contribution plan is $50,000. In 2012 the maximum defined benefit amount is $200,000. p. 572 In 2012 the Social Security wage base is $110,100. In 2012 employees continue to pay 4.2% FICA tax. Chapter 51 p. 577 In 2012 the amount that an individual can contribute to an IRA remains at $5,000, with the catch-up contribution limit also remaining at $1,000. The AGI threshold for taking a deduction for an IRA contribution increases from $56,000 to $58,000 for Single returns and increases from $90,000 to $92,000 for Joint returns. For a non-participant spouse, the threshold for making a deductible contribution rises from $169,000 to $173,000. p. 579 In 2012 the amount that an individual can contribute to a Roth IRA remains at $5,000, with the catch-up contribution limit also remaining at $1,000. The lower threshold amount for a single person making a contribution to a Roth IRA rises from $107,000 to $110,000. The lower threshold amount for a married couple filing jointly making a contribution to a Roth IRA rises from $169,000 to $173,000. p. 585 In 2012 the amount that may be contributed to a SEP rises from $49,000 to $50,000. The compensation limit rises from $245,000 to $250,000. Allowed employee deferrals rise from $16,500 to $17,000, with catch-up contributions remaining at $5,500. The compensation threshold for counting an employee to be eligible for a SEP remains at $550. p. 587 In 2012 the contribution limit for a SIMPLE plan remains at $11,500. Copyright 2012 The National Underwriter Company 4
Chapter 52 pp. 590, 603 In 2012 the elective deferral limit rises from $16,500 to $17,000. The catch-up amount remains at $5,500. pp. 591-593, 603 In 2012 the contribution addition limit for a defined contribution plan rises from $49,000 to $50,000. p. 592 In 2012 the maximum benefit for a defined benefit plan rises from $195,000 to $200,000. p. 595 In 2012 the amount used to determine a key employee rises from $160,000 to $165,000. p. 596 In 2012 the defined contribution plan contribution limit rises from $245,000 to $250,000. p. 599 In 2012 the estate tax exemption equivalent amount is $5,120,000. p. 600 In 2012 PBGC premiums remain $35 per participant. p. 604 In 2012 the deferral limit for a SIMPLE 401(k) plan remains at $11,500. Chapter 55 p. 627 In 2012 the Long Term Care per diem daily limit amount rises from $300 to $310. Chapter 57 p. 644 In 2012, the annual gift tax exclusion remains at $13,000 and the estate tax exemption equivalent amount is $5,120,000. Chapter 58 p. 658 The decedents dying in 2011, the Farm Credit Bank interest rates are as follows: AgFirst, FCB 6.97 AgriBank, FCB 6.12 CoBank, ACB 5.78 Texas, FCB 6.04 U.S. AgBank, FCB 5.88 In 2012 the following tables have changed: Appendix A Taxable Years Beginning in 2012 STANDARD DEDUCTION: Married, filing jointly $11,900 Married, filing separately 5,950 Head of Household 8,700 Single 5,950 PERSONAL EXEMPTION: $3,800 Copyright 2012 The National Underwriter Company 5
JOINT RETURNS AND SINGLE INDIVIDUALS SURVIVNG SPOUSES Taxable Years Beginning in 2012 Taxable Years Beginning in 2012 Tax on Lower Tax Rate on Excess on Excess $ -0- to $ 8,700 $ -0-10% $ -0- to $17,400 $ -0-10% 8,700 to 35,350 870.00 15% 17,400 to 70,700 1,740.00 15% 35,350 to 85,650 4,867.50 25% 70,700 to 142,700 9,735.00 25% 85,650 to 178,650 17,442.50 28% 142,700 to 217,450 27,735.00 28% 178,650 to 388,350 43,482.50 33% 217,450 to 388,350 48,665.00 33% 388,350 to 112,683.50 35% 388,350 to 105,062.00 35% MARRIED FILING SEPARATELY HEAD OF HOUSEHOLD Taxable Years Beginning in 2012 Taxable Years Beginning in 2012 Tax on Lower on Excess on Excess $ -0- to $8,700 $ -0-10% $ -0- to $12,400 $ -0-10% 8,700 to 35,350 870.00 15% 12,400 to 47,350 1,240.50 15% 35,350 to 71,350 4,867.50 25% 47,350 to 122,300 6,482.50 25% 71,350 to 108,725 13,867.50 28% 122,300 to 198,050 25,220.00 28% 108,725 to 194,175 24,332.50 33% 198,050 to 388,350 46,430.00 33% 194,175 To 52,531.00 35% 388,350 to 109,229.00 35% ESTATES AND TRUSTS Taxable Years Beginning in 2012 on Excess $ -0- to $2,400 $ -0-15% 2,400 to 5,600 360.00 25% 5,600 to 8,500 1,160.00 28% 8,500 to 11,650 1,972.00 33% 11,650 To 3,011.50 35% p. 732 In 2012, the estate and gift tax exemption equivalent amount is $5,120,000 and the unified credit is $1,772,800. Copyright 2012 The National Underwriter Company 6