No, we’re not talking about the 1940 film, “Christmas in July,” nor are we talking about Werther’s 1892 opera which featured children rehearsing Christmas songs in July. We are talking about the unprecedented opportunity each individual has to make gifts in 2012 to take advantage of his or her lifetime gift-tax exemption amount.
This year, after adjustment for inflation, the lifetime gift-tax exemption amount is $5.12 million! For a married couple, this amount is $10.24 million. In 2013, this will revert to $1 million for each person (unless Congress acts to change current law). Not only is the exemption amount amazing, but so is the top tax rate for gifts made over the exemption amount. The top gift tax rate is 35% in 2012 but will be 55% in 2013 unless Congress acts to change it. Read the following Wall Street Journal article summarizing some of the gift-giving options and make it Christmas in July for your family! http://online.wsj.com/article/SB10001424052702304791704577420534221056416.html#printMode
Under current law, this opportunity ends December 31, 2012. Given the advance planning that may be required, start today. Call Marlaine Teahan at 517-377-0869 for more information.