David Majors reported on his blog today that today the DC Council approved sweeping tax cuts, including changes to the District’s estate tax.

Currently, estates in the District with a taxable value above $1 million are subject to DC estate tax.

As ultimately passed by the Council, the estate tax exemption amount is increased from $1 million to $2 million in 2016.In later years, the amount that may pass DC estate tax-free will eventually be increased to be the same as the federal amount now $5.34 million, indexed for inflation annually.

This increase of the estate tax exemption to the federal amount, however, will not take effect until additional revenue becomes available and only after such revenue is enough to pay for at least twelve other tax cuts given higher priority. Thus, depending upon the District’s revenue receipts it may take several or more years before the DC exemption is above $5 million and indexed for inflation.

via DC Council Raises Estate Tax Exemption.

 

See full text of bill at following link:  http://lims.dccouncil.us/_layouts/15/uploader/Download.aspx?legislationid=31515&filename=B20-0750-Amendment4.pdf

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.