Estate Tax and Estate / Trust Income Tax update for 2015

The IRS released Rev. Proc. 2014-61, which contains the 2015 adjustments for the federal estate tax, gift tax, and generation-skipping transfer tax exemptions as well as the 2015 annual gift tax exclusions:

1) The estate tax exemption will increase from $5,340,000 in 2014 to $5,430,000 in 2015 The top estate tax rate will be 40%. The lifetime gift tax exemption and generation-skipping transfer tax exemptions are the same with the same top rate.

2) The annual gift tax exclusion will remain at $14,000 in 2015.

3) The annual gift tax exclusion for gifts to noncitizen spouses will increase to $147,000 in 2015.

In addition, Rev. Proc. 2014-61 provides that estates and trusts will be subject to the following income tax brackets in 2015:

1) If the income is not over $2,500.00, the tax rate is 15%.

2) If the taxable income is over $2,500 but not over $5,900, then the tax is $375 plus 25% of the excess over $2,500.

3) If the taxable income is over $5,900 but not over $9,050, then that tax is $1,225 plus 28% of the excess over $,5900.

4) If the taxable income is over $9,050 but not over $12,300, then the tax is $2,107 plus 33% of the excess over $9,050.

5) If the taxable income is over $12,300, then the tax is $3,179.50 plus 39.6% of the excess over $12,300.

check out http://www.dalexander.com/node/98 for more info.

Daniel H. Alexander, Attorney www.dalexander.com

HAMP and HARP Mortgage Assistance Programs Extended Another Year

 

Financially strapped homeowners in need of mortgage relief are getting more time to take advantage of the federal government’s HAMP and HARP initiatives. U.S. Treasury Secretary Jacob Lew recently announced that both programs are being extended for a second time — until December 31, 2016.

 

Since its inception in April 2009, HARP (Home Affordable Refinance Program) has helped more than 3 million homeowners refinance their mortgages. The program is  set up to assist people whose homes have lost value, particularly those who owe more than their homes are worth. In the first quarter of 2014, HARP loans accounted for over 20% of all refinanced mortgages.

HAMP (Home Affordable Modification Program) is designed to help homeowners who cannot afford their current mortgages by arranging loan modifications. To date, the program has arranged more than 1 million permanent loan modifications.

Both programs were to end on December 31, 2013. Last year the federal government announced a first extension through 2015.

New laws proposed to reinforce the rights of residents in residential care facilities

Senate and Assembly committees are in the process of reviewing nine bills intended to reinforce the rights of residents in residential care facilities. The package of bills, introduced earlier this year under the collective title of the RCFE Reform Act of 2014, is sponsored by California Advocates for Nursing Home Reform. The bills seek to provide better scrutiny of residential care facilities by the State Social Services Department, promote residents' rights through enactment of a bill of rights and of onsite resident and family councils,  enforcement of rule violations and enhanced sanctions, better investigation of complaints, and enhanced training of staff members of facilities.

For more information, go to the CANHR website (www.CANHR.org) and click the Legislation tab.

The bills are:  SB 894 and 895 (Corbett); SB 911 (Block); SB 1153; SB 1218 (Yee); AB 1554 (Skinner), AB 1571 and 1572 (Eggman), and AB 2171 (Wieckowski).

SEC Sets New Fee Rate for Securities Transactions

SEC Sets New Fee Rate for Securities Transactions

The SEC recently announced an increased fee rate applicable to most securities transactions, as determined in accordance with Section 31 of the Securities Exchange Act of 1934. Effective Tuesday, March 18, 2014, the fee rate will be set at $22.10 per million dollars. The assessment on security futures transactions will remain unchanged at $0.0042 for each round turn transaction.

Daniel Alexander, Attorney www.dalexander.com

Wiki-bill, a new frontier

A wiki-bill?  Make laws like creating and changing a wiki page, REALLY? 

 

Assemblyman Gatto has proposed introducing legislation in the trusts and estates area through a “wiki-bill”. A “wiki-bill” is created in a similar manner to entries made in Wikipedia: additions and comments made by interested individuals in the subject-matter.

Any member of the public can participate in this process by going to www.mikegatto.wikispaces.com

 

Daniel H. Alexander recognized as "Top Lawyers In California"

Attorney Daniel H. Alexander has received recognition once again in the 2014 edition of The Legal Network as being one of the "Top Lawyers In California" with the "Highest in Ethical Standards & Professional Excellence"