JD Supra reports that on October 14th, Governor Christie signed a new law that will remove the New Jersey estate tax. The law will be implemented in a three-year process. Beginning in 2016 New Jersey decedents will not be taxed on an estate less than $675,000. Beginning January 1, 2017, there will be no tax on decedents if their taxable estates are less than two-million dollars. On January 1, 2018 the New Jersey estate tax will be eliminated altogether. The agreement to repeal the estate tax, comes as a compromise to an increase of the New Jersey gas tax by twenty-three cents per gallon. Continue reading “New Jersey Estate Tax Repeal: Is it now better to die in New Jersey than Florida?”
New Jersey residents may see a possible elimination of the estate tax in the next few years, but that all hinges on whether or not an increase in the state’s gas tax will be approved.
NorthJersey.com reported that the State Senate passed a bill, sponsored by Paul Sarlo and Steve Oroho, that would increase the gas tax by 23 cents, with an amendment to phase out the estate tax over time. As part of the deal, the threshold at which an inheritance would be taxed would increase until 2020, when the tax would be totally eliminated, according to NJBiz. The exemption is currently at $675,000, but it would go up to $2 million at the beginning of 2017 and again to $5.4 million by 2018.
The United States Supreme Court has handed down its much-anticipated decision on the fate of Section 3 of the Defense of Marriage Act (DOMA) and the ruling has many implications for taxpayers. The Court struck down Section 3 of DOMA in Windsor v. U.S., June 26, 2013, opening the door for the federal government to extend to same-sex married couples the same benefits available to opposite-sex married couples, including a host of tax-related benefits.