With the new administration and Congress having recently taken office, we are now in the calm before the storm for news on new tax legislation, but there have been several federal and state tax developments of note:
- The federal exemption for estate taxes has increased to $5,490,000 from its previous level of $5,450,000. Illinois’ estate tax exemption remains at $4,000,000. The annual gift tax exclusion remains at $14,000.
- Farmers should be aware that trailers for transportation of crops, animals, or animal food products are not considered part of production agriculture and do not qualify for farm machinery and equipment exemption. If sales tax is not paid at time of purchase, sales tax should be self assessed.
With the expected changes in estate tax and income tax law coming in the next several years, it will be important to monitor developments. If you have questions or concerns about how new legislation may affect you, your business, or your estate plan, the attorneys at Plager, Krug, Bauer & Rudolph, Ltd. are available to assist you.