Over the weekend, the tax bill that would preserve the Bush tax cuts for individuals making less $200,000 and families making less than $250,00 failed to pass in the Senate. The bill had passed in the House. Nothing has been set in stone yet, but word from the Capitol is that a compromise is in the works.
Purportedly, the compromise will involve a temporary extension of all the Bush tax cuts. The compromise is also supposed to include an extension of unemployment benefits, which ran out last Wednesday.
It is unclear at the moment what this compromise would do to the estate tax.
Update: It seems the compromise will include a reinstatement of the estate tax at a top rate of 35% with an exemption of $5 million.
For more on tax planning or other tax issues, contact the Illinois tax attorneys of Horowitz & Weinstein.