Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
The Bloomberg Bureau of National Affairs released its analysis for the upcoming tax year, with predictions showing that taxpayers may see incremental relief for the coming year. Due to inflation adjustments, people who are carrying over the same income as the last tax year are expected to see lower effective tax rates and lower overall tax bills. The Bloomberg BNA predictions, however, are only projections that should not be considered as final until the IRS releases the official tax rates for 2015 this year. -- Forbes
The Labor Department has projected that the federal estate tax exemption could reach $5.43 million by 2015. The estimate could have a significant impact on federal and gift tax exemption as well as the kiddie tax threshold and annual tax exclusion, according to Forbes. Using annual gift exclusion becomes less important as the estate tax exemption continues to rise, but it can be used in states that have a separate death tax levies. -- Forbes
Clients in higher income brackets, typically those who earn in excess of $150,000 per year, may face higher tax rates as inversion deals bring unexpected payouts and equivalent tax increases, according to The Wall Street Journal. A wide tax category, with a 15% nominal tax rate based on long term gains, will be worst hit, with owed taxes on gains to reach almost 28%. However, the tax impact levels off for families earning more than $500,000 annually, with rates on long-term gains reaching 24%. -- Wall Street Journal
A look at individuals who refuse to pay their taxes. Some believe the federal income tax is unconstitutional, others simply dont want to pony up the cash, and a few have done it as a form of protest against non-tax-related policies such as gay-marriage laws or the Vietnam conflict. Plus, a review of famous tax protests and protesters throughout U.S. history. -- Washington Post