United States (“U.S.”) vacation destinations in states such as New York, Florida, and California have some of the most valuable and desirable real property in the world. Wealthy visitors often decide to purchase a second or third home while on vacation without much thought. However, U.S. tax consequences should be a major consideration when choosing to purchase real property in the U.S. Those who do not primarily live in the U.S. must ask three extremely important questions regarding their US real property: Continue reading The Three Non-Negotiable Questions Every Nonresident
Ever since the White House produced the one-page memo on April 26, 2017 outlining President Trump’s tax plan, individuals have wondered if potential changes in the tax law will impact them. To the wealthy, the stakes are high. Will the estate tax be repealed? Will the corporate tax rate decrease, and if so, by how much? Will there be a “tax holiday” whereby trillions of dollars legally held overseas by companies could potentially be repatriated to the United States at a low tax rate?
While uncertainty abounds, many commentators believe that a reduction in income tax rates (and possible repeal of the Net Investment Income Tax) is on the horizon. Can you take advantage of this presupposition? The answer is “yes,” if the circumstances are right. Continue reading Income Tax Planning in Uncertainty
On Oct. 7, 2016, the New Jersey legislature approved a bill that would eliminate the New Jersey estate tax by 2018. The bill is the result of a compromise between Gov. Chris Christie and the state legislature to increase the state’s gas tax by 23 cents per gallon and slightly reduce the state sales tax. The bill is expected to be signed by Governor Christie in mid-October. [UPDATE: The governor signed the bill into law on October 14, 2016].
New Jersey currently has one of the most penalizing estate tax regimes in the country, with an exemption of only $675,000 and a top marginal rate of 16 percent. The new legislation would increase the exemption to $2 million on Jan. 1, 2017, and eliminate the tax entirely on Jan. 1, 2018.
On May 10, 2016, Governor Hogan signed the Maryland Fiduciary Access to Digital Assets Act (the “Act”), which will become effective on October 1 of this year. Continue reading Maryland Enacts Digital Assets Act
The Wealth Planning Practice Group at Duane Morris began a blog in May 2016.