As a Salt Lake City tax attorney and estate planning attorney, I have a substantial interest in tracking tax developments and news. Recently I read a brief article entitled "Bush Tax Cuts: Cutting Through the Noise" on CNNs financial news website. The article includes a nice chart that summarizes the impact of the expiring income tax cuts--something that is receiving a lot of attention these days. It is my understanding that there are some meetings planned for the President after Thanksgiving to discuss a temporary extension. Although everyone seems very concerned about the impact of extending the income tax cuts, and I do a lot of income tax planning in my practice, I see less chatter about extending the estate tax cut/repeal. I assume that if the income tax cuts were extended temporarily, the estate tax cut/repeal would also be extended, but I just don't know. It is interesting to me that no extension has hit to this point. Frankly, I think lawmakers will have more incentive to cut income taxes as estate taxes are probably an easier temorary pill to swallow (oddly, I have found that few people like to contemplate their mortality). Only time will tell what happens--but I am not optimistic that an extension deal will be reached in time.
Keep your eye on the news over the next few weeks. Keep watching this blog. And visit our website for tax planning news and information.