According to the Tax Foundation, currently 14 states and the District of Columbia have an estate tax, 6 states have an inheritance tax, and two states (Maryland and New Jersey) have both. These taxes are on top of the federal estate tax of 40%; estates up to $5.45 million in 2016 are exempt. For a business owner, these taxes can erode what heirs inherit and, in some cases, can cause families to sell business interests at fire-sale prices just to pay the taxes. Best action: business owners should work with their tax advisors to determine whether estate taxes are a concern and, if yes, what to do about them.
Barbara Weltman
Big Ideas for Small Business, Inc.
Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."
Footer
It's important to take care of ourselves and take steps to nourish ourselves--body, mind and soul. We may have to do this in different and creative ways now that many of us are staying at home. It's still important that we take time for ourselves. #selfcare #Health