Planning Focus is Shifting
recently, estate planning strategies typically focused on
minimizing federal gift and estate taxes, such as by giving
away assets during life to reduce the taxable estate.
however, the focus is shifting toward income taxes.
Since 2001, the federal exemption has grown from $675,000 to
$5.43 million, meaning that fewer people have to worry about
estate tax liability.
In addition, the top estate tax
rate has decreased from 55% to 40%, while the top individual
income tax rate has increased to 39.6% - nearly as high as the
top estate tax rate.
The heightened importance of income taxes means that
holding assets until death rather than giving them away during
your life may be advantageous. If you give away an
appreciated asset, the recipient takes over your tax basis in
the asset, triggering capital gains taxes should he or she
turn around and sell it.
When an appreciated asset is inherited, on the other hand, the
recipientís basis is "stepped up" to the assetís fair market
value on the date of death, erasing the built-in capital gain.
So retaining appreciating assets until death can save
significant income taxes.
If you have questions about whether it's better to focus on
reducing estate taxes or income taxes, please give us a call
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello itís Michael Uadiale, CPA of
SMEED CPA Inc. Weíve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If weíve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,