North Carolina Tax Planning Attorney
You work hard to provide for yourself and your loved ones. It is your goal to live comfortably and when you are gone, for your loved ones to reap the benefits of your hard work. In order to best achieve this goal, it is important that you seek the advice of an attorney that understands North Carolina and federal tax law. Jeff Bloomfield of Carolina Estate Planning is an attorney with that knowledge. He can meet with you and together you can determine the best strategies to keep your money where you want it- in your pocket.
Important North Carolina & Federal Taxes to Consider
There are several different taxes which must be considered during any thorough estate plan. They include:
Of concern to most people is whether or not there will be an “inheritance” or “estate” tax on their estate when they die. The good news is that North Carolina repealed its estate tax in 2013, so there is no state tax on a decedent’s estate. There is, however, a federal estate tax that may apply if the estate is significant. Current federal law is that the gross estate must be worth in excess 11.58 million for there to be an estate tax.
Generation-Skipping Transfer Tax
The Generation-Skipping Transfer Tax is a federal tax that results when there is a transfer of property either by gift or inheritance to a beneficiary that is more than 37.5 years younger than the person bequeathing the property. The purpose of this tax was to close a loophole whereby individuals were able to avoid federal taxes by leaving their estate to their grandchildren. The Generation-Skipping Transfer Tax only applies when the amount in question exceeds 11.58 million and the tax percentage is 40%.
Capital Gains Tax
A Capital Gains Tax is a tax on the profit realized from the sale of an asset. It is determined by subtracting the original purchase price from the amount the asset sold for. In North Carolina, capital gains are taxed at the rate of 5.499%. Federal capital gains tax amounts are determined by the amount of the gain as well as whether the gain is short-term or long-term. Examples of properties that may require a capital gains tax include real property, stocks, and bonds.
According to the Internal Revenue Service (IRS) a gift is “any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.” North Carolina repealed its gift tax in 2009. However, the federal government does have a tax on gifts that exceed $15,000.00 in value.
Currently, the North Carolina income tax is 5.25% while the federal income tax varies according to income. Persons with higher incomes will pay a higher tax percentage than those of lower income.
Contact Jeff to Learn More About Tax Planning
I am Attorney Jeff Bloomfield, and I welcome you to contact me for more information regarding tax planning strategies. My telephone number is 336-221-4457 or you may reach out to me via my contact page. I am excited to put my experience and knowledge to work for you!