Word on the street is that collectibles appraisers have had a busy year. With the lifetime gift tax exemption scheduled to drop from $5 million to $1 million on Jan. 1, 2013, collectors are scuffling to pass on as much tax-free wealth as possible to their children and heirs.
Collectors who gift this year will save themselves some money in gift taxes, as well, because the gift tax rate jumps from 35 percent to 55 percent on the same date. The individual who gives the gift pays the taxes on any amounts over their lifetime gifting exemption at the rate current at the time of the gift. So, even if you’re approaching your lifetime gifting limit, if you are sitting on a valuable collection that will someday pass to an heir, now is the time to consider how you will transfer the property.
As the filing deadline closes in, both collectors and appraisers will be pressured to get appraisals and paperwork done on time. Read More
Originally posted 2014-01-10 13:29:00.