Will America’s favorite pastime force lawmakers to fix the estate tax?
The owner of the New York Yankees, George Steinbrenner, died on July 13th 2010 leaving a fortune that Forbes magazine estimated to be approximately $1,150,000,000! The estate tax has a loophole that members of congress have failed to close. In 2001, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) placed a temporary sunset on the estate tax for 2010. In 2010, the estate tax dropped to zero percent. Because Mr. Steinbrenner was lucky enough (or unlucky enough) to pass in 2010, it is estimated that his estate will save approximately $500,000,000 in Federal estate tax. However, New York lawmakers were smart enough to keep the New York Estate taxes in place which will require the Steinbrenner Estate to pay an estimated $175,000,000 to the State of New York.
With all of the changing tax laws surrounding the estate taxes and income taxes (see my July 12th 2010 post: income taxes), please feel free to contact the Las Vegas CPAs. We would be happy to schedule a meeting a discuss your personal tax situation.