Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Agricultureread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Silver's rally could be losing its shine after the precious metal reached its year-to-date high, futures experts warn.Futures Nowread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
Amazon hires Trump-allied lobbyist Jeff Miller as battle for Pentagon contract heats up.Politicsread more
If you're planning on gifting millions of dollars to organizations and family members while you're alive, do it now.
The Tax Cuts and Jobs Act raised the gift and estate tax exemption — also known as the unified credit — to $11.18 million per person in 2018, more than doubling the limit under the old tax law.
This means that any one person could transfer more than $11 million, either in the form of gifts while alive or in bequests after death — and do so without having that amount be subject to the 40 percent gift and estate tax.
Wealthy families should know that while they have the blessing of the IRS to make large gifts for now, the exemption is set to fall back to about $5 million per person at the end of 2025.
Accountants are questioning whether that means that gifts in excess of $5 million might be clawed back into the donor's estate and hit with the gift and estate tax if you die after 2025.
"Many people are concerned about having a claw-back," said Andrew M. Katzenstein, partner in the private client services department at Proskauer Rose in Los Angeles. He spoke at the American Institute of CPA's ENGAGE conference in Las Vegas on Monday.
"They're thinking about what kind of planning they should do if they make big gifts and die when the exemption is down," he said. "Will Congress say that you made an $11 million gift, but now it's $5 million, so that $6 million gets clawed back?"
For now, the answer is "nobody knows," said Katzenstein.
The decrease in the $11.18 million gift and estate tax exemption just might happen this time because elected officials don't have to do much in order for it to happen.
"This is the first time we've had a law that says that the exemption is supposed to come down," said Katzenstein. "That means Congress doesn't have to do anything for the exemption to fall back."
Even though there's still plenty of uncertainty over what will happen to the increased exemption, Katzenstein recommends that wealthy families proceed with planned gifts.
That's because those gifts — especially if they are rapidly appreciating assets — will no longer be part of your estate.
Even if the IRS ultimately claws back the amount in excess of $5 million, it will only take back the gifted assets up to the amount of exemption that is no longer available, Katzenstein said.
Any growth on those clawed-back assets will remain outside of the estate and escape the 40 percent tax.
"It always makes sense to use the unified credit early," Katzenstein said. "You get the benefit of moving the appreciation out of the estate."
More from Personal Finance
What expats don't know about this tax rule could cost them $100,000
Taxpayers who failed to file return face a higher penalty after June 14
Here's what Social Security's budget woes mean for your retirement