My mother sends me emails everyday sent to her by others. Some are funny, some are charming and others are just plain wrong. Today's email was about the current tax rates and how someone can send out such erroneous information is beyond me. So if there is any misconception out there about the current (2014) tax rates let me clarify.
The Federal estate tax rate maximum is 40%. That is the rate applied to estates or to gifts in excess of $5,350,000 and only to transfers to someone other than a spouse. The amount of $5,350,000 is adjusted each year in accordance with inflation. Transfers to a spouse have no transfer tax applied to such a transfer. The top Federal capital gains rate is 20%, however an additional tax maybe applied to high income earners of an additional 3.8% for a total tax rate of 23.8%. Collectibles are taxed at 28%. The top Federal income tax rate is 39.6% and also may have the additional 3.8% tax applied for high income earners. Social security tax on wages is an additional 15.3% - one half is paid by the employer and one half is paid by the employee. Social security tax is a combination of social security and medicare tax.
Knowing the tax rates is just as important as paying attention to your investments. So work with your accountant or your tax advisor to understand your particular tax situation.
The Federal estate tax rate maximum is 40%. That is the rate applied to estates or to gifts in excess of $5,350,000 and only to transfers to someone other than a spouse. The amount of $5,350,000 is adjusted each year in accordance with inflation. Transfers to a spouse have no transfer tax applied to such a transfer. The top Federal capital gains rate is 20%, however an additional tax maybe applied to high income earners of an additional 3.8% for a total tax rate of 23.8%. Collectibles are taxed at 28%. The top Federal income tax rate is 39.6% and also may have the additional 3.8% tax applied for high income earners. Social security tax on wages is an additional 15.3% - one half is paid by the employer and one half is paid by the employee. Social security tax is a combination of social security and medicare tax.
Knowing the tax rates is just as important as paying attention to your investments. So work with your accountant or your tax advisor to understand your particular tax situation.
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