Estate Tax Repeal on hold

As of October 26, 2009 the estate tax reform is under Congressional review. Thomson Reuters gives a more concise summary of what's in store unless Congress changes the rules.

A move is underway in Congress to stave off the repeal of the estate tax in 2010 and prevent a wholesale revision of the transfer tax rules in 2011.

The introduction of the Estate Tax Relief Act of 2009 by House members would otherwise repeal both the 2010 one-year termination of the estate tax and the new basis rules, increase the estate and gift tax unified credit beginning in 2010, and coordinate a reduction in the maximum rate of tax (from 45% to 35% over a period of years) with a phaseout of the deduction for State death taxes.

Additionally, House Ways and Means Committee Chair Charlie Rangel made public his intent to make the estate tax permanent. Due to the focus on the health reform bill, the Congressman was unclear about when the Bill would hit the House floor. However, he didn't expect to unveil his estate tax proposal until after next week's Democratic caucus meeting.

Source: http://ria.thomsonreuters.com/taxwatch/default.asp

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