When the Tax Cuts and Jobs Act went into effect on January 1, 2018, Congress doubled the estate tax exemption levels to $22.4 million per married couple.
Dover Dixon Horne member Cal McCastlain told DTN Farm Business that before 2018, it didn’t take “a lot of real estate to be exposed to estate taxes, and so there was a lot of incentive to gift portions of that real estate, or the company that owned real estate, in order to reduce this taxable estate.”
He added that the incentive for that gift plan is no longer there.
"The 2017 tax act got a lot of attention for the significant changes that were made on the income tax side. Everybody certainly needs to give those attention. From the estate tax planning standpoint, it was rather simplistic, but extremely significant and impactful," McCastlain said.
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