Leo J. Cushing, Esq., CPA, LL.M’s Post

Any other property tax nerds interested in what would happen if the 421-a exemption was an abatement instead? Assuming we keep the total $32 billion NYC tax levy the same, and the $1.8 billion value of 421-a benefits the same, the tax burden would shift around amongst property types. "The choice between exemption versus abatement partly determines who would pay for a 421-a replacement property tax break. As an exemption— the form of the now-expired 421-a program—other apartments (Class 2) that did not receive 421-a pay a greater share of the tax break. If an abatement is chosen, the burden of paying for the tax break is spread more widely across properties in the City, including small residential properties and commercial properties. Policymakers should consider these impacts within the context of a property tax system that already has existing differences in the approaches for taxing the four classes of properties. "IBO’s estimates suggest that the effects of these alternative approaches are sizable: on average, were the 421-a benefits structured as an abatement in fiscal year 2023, apartments (Class 2) would have owed approximately $441 less in property tax per residential unit [-2.85% savings], while one-, two-, and three-unit houses (Class 1) would have owed approximately $222 more per unit [+0.68% increase]. Classes 3 and 4 would also have paid more. "As Albany considers a new version of the 421-a program, policymakers should be aware that the distribution of the tax burden is affected by whether a new version of the program provides those tax benefits through exemptions, which reduce the assessed value of the property that then the tax rate is applied to, or through abatements, which reduce the amount of taxes owed without affecting assessed values." https://lnkd.in/eG5QQZP4 Great work Richard DiSalvo of the New York City Independent Budget Office

US ESTATE TAX: In round figures, the US Estate tax exemption (for US Persons, and for Canadian citizens with US situs assets .... thanks to the US-Canada Tax Treaty, and for select others around the world) is nearly $13 million ($26 million) -- in 2024 -- and will be that amount, plus an inflation bump, for those who die in 2025. For 2026 the exemption amount is SCHEDULED to be cut in half, and then bumped up again for inflation. President Biden has no plan to prevent that cut (in half! in real terms) from occurring, and has campaigned on making sure it does. Former Pres. Trump says he intends, if elected, to extend or make permanent the law that keeps the exemption elevated. But even if he were to win that doesn't mean, necessarily, that Congress will go along. So: what to do if you're a US Person (or CDN citizen with US situs assets) with a net worth EXCEEDING roughly $13 million (roughly $26 million if married) -- right now (ie. in 2024) -- and your goal is to legally avoid -- or minimize to the extent possible -- the US estate tax? Well, if you have loved ones in the next generation, there is a strategy (which can be executed either in 2024 or 2025) that helps you LOCK-IN that current year's elevated exemption level ... and you don't have to die in that year (or in any particular year) to use it. So, if you think you're likely to live until 1/1/2026 or beyond and if your current net worth exceeds $13 million ($26M for a married couple), ask your tax advisor about this US estate planning strategy, or send me a private message. I'll briefly describe this, relatively straightforward, strategy to you for educational purposes. It's education, not tax advice, since you are not my client and I am unfamiliar with all relevant aspects of your specific tax and financial circumstances. Nuances always apply when it comes to taxes. So seek specific advice from your tax advisor once you learn any general strategy that might apply to you. 🇺🇲🇺🇲

Find out the main differences between property tax and #realestate tax. #realestatetips

Find out the main differences between property tax and #realestate tax. #realestatetips

Did you know that federal estate taxes have played a role in funding the U.S. government since its inception? Here’s a quick journey through history: 1. 𝟭𝟳𝟵𝟳: The first federal stamps were introduced for wills, funding the Navy during an undeclared war with France. 2. 𝗖𝗶𝘃𝗶𝗹 𝗪𝗮𝗿 𝗘𝗿𝗮 (𝟭𝟴𝟲𝟮): The Revenue Act of 1862 established an inheritance tax, with further amendments in 1864, but it was repealed post-war. 3. 𝗦𝗽𝗮𝗻𝗶𝘀𝗵-𝗔𝗺𝗲𝗿𝗶𝗰𝗮𝗻 𝗪𝗮𝗿 (𝟭𝟴𝟵𝟴): A federal legacy tax was introduced, featuring graduated rates based on estate size, but was quickly repealed. 4. 𝟭𝟵𝟭𝟯: The ratification of the 16th Amendment allowed for the modern estate tax to be established via the Revenue Act of 1916, which has been a staple ever since. 5. 𝗥𝗲𝗰𝗲𝗻𝘁 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 (𝟮𝟬𝟭𝟬+): The estate tax saw a brief expiration in 2010, but was reinstated and made permanent in 2012. The Tax Cuts and Jobs Act of 2017 significantly increased exemptions. As 2025 approaches, it is important to review your estate plan considering evolving regulations and the potential expiration of The Tax Cuts and Jobs Act. If you have questions regarding estate planning strategies, please reach out to one of our wealth planners. https://lnkd.in/gwThgvrB

Trying to keep up with the proposed property tax legislation in Nebraska? Here is a great article with the latest from the Nebraska Examiner.

Are You Ready for the Sunset?  That is, the sunsetting of the Estate Tax Exemption in 2025.  At the end of 2025, the current Estate Tax Exemption will drop significantly, exposing wealthy families to substantial additional estate tax liability. Follow the link to learn more. https://lnkd.in/gx6pCkNE

S.17, New York—Property Tax: Reminder Issued on Deadline to Upgrade to the Enhanced STAR Property Tax Exemption The New York Department of Taxation and Finance reminds seniors that, for most localities, the deadline to apply for greater property tax savings through the Enhanced STAR property tax exemption is March 1. Basic STAR exemption recipients who turn 65 this year and meet the eligibility requirements should apply to their assessor for the Enhanced STAR exemption. To be eligible to upgrade from the Basic STAR property tax exemption to the 2024 Enhanced STAR property tax exemption: -the property must be the primary residence of at least one age-eligible owner; -all owners of the property must be at least age 65 as of December of the year of the exemption, except where the property is jointly owned by only a married couple or only siblings, in which case only one owner needs to meet the age requirement; and -the combined incomes of all owners (residents and non-residents)—and any owner's spouse who resides at the property—must have been equal to or below $98,700 in 2022. #NYtaxes #tax

What is the New York Estate Tax “Cliff”? In addition to the federal estate tax, which may be levied upon a decedent’s estate, New York imposes a separate state estate tax regime. Generally a decedent’s estate is subject to the New York State estate tax if such decedent dies a resident of New York, or if the decedent dies a non-resident but leaves behind real or tangible property physically present in the state. For 2024, New York’s estate tax exclusion amount is $6,940,000 --- Why is it called the New York Estate Tax “Cliff”? In modifying the way it taxes New York estates, the State implemented a rule precluding certain estates from taking advantage of the exclusion from estate tax. The tax is generally applied as follows: 1.) A taxable estate with a value equal to or less than the exclusion amount would not be subject to New York State estate tax. 2.) A taxable estate with a value greater than the exclusion amount but less than 105% of the exclusion amount would pay tax on the portion of such estate over the exclusion amount. 3.) A taxable estate with a value that exceeds 105% of the exclusion amount would pay tax on the entire value of the estate. Since the exclusion amount today in 2024 is equal to $6,940,000, a New York taxable estate with a value exceeding $7,287,000 (i.e., 105% of the exclusion amount) would “fall off the cliff” and the entire estate, from the very first dollar of value, would be subject to New York estate tax. #taxstrategies #estatetaxplanning #premiumfunding #lifeinsurance #premiumfinance #taxplanning

ATED Tax Do you have a residential property worth more than £500,000 which is owned in the name of a company? Are you paying ATED tax? The Annual Tax on Enveloped Dwellings (ATED) is a UK tax that applies to companies that own high-value residential property in the UK. The tax is due annually, and the amount payable depends on the value of the property. Further details can be found using this link - Annual Tax on Enveloped Dwellings - GOV.UK (www.gov.uk) For the current year (1 April 2023 to 31 March 2024), the ATED rates are as follows: Property valueAnnual chargebetween £500,001 and £1 million£4,150between £1,000,001 and £2 million£8,450between £2,000,001 and £5 million£28,650between £5,000,001 and £10 million£67,050between £10 million and up to £20 million£134,550over £20m:£269,450 It's important to note that there are certain exemptions and reliefs available, so the amount payable may be reduced or eliminated in certain circumstances. If you're unsure about whether the ATED applies to your company, or if you need help calculating or paying the tax, it's best to consult with a tax professional. Jas Virk, Real Estate Associate Partner at Lichfield based law firm, Keelys LLP, 01543 420000 https://lnkd.in/e_eAKp7G