New Tax Law Changes for 2022 - YouTube

well hey there folks Elder Law Care  attorney patrick kelleher coming to you from  

elderlawcare.com folks i want to go over with you  the new proposed tax law changes coming down the  

pike in 2022 so pull up your chair get your pen  or pencil ready and take some notes because this  

is really really important tax reform that the  current administration is unveiling and rolling  

out expected to be january 1st 2022 some of  these major tax law changes they're calling this  

the build back better act the build back  better act is what they're referring to it as  

and there's three big areas of change  that we're going to cover in today's video  

number one folks the federal estate tax is  going to be rolled back it's going to be reduced  

and currently the federal estate tax is 11.7  million dollars and the estate tax is a death  

tax when you pass away if your estate is over  that threshold the federal government will be  

looking to tax your estate currently in the time  of shooting this video december 2021 the federal  

estate tax is 11.7 million current administration  folks you ought to know are looking at rolling  

that back to about 6 million dollars or less about  6 million or less and another important number you  

ought to know the taxable rate if you do have a  taxable estate in excess of six million dollars  

or whatever the final new tax law number comes out  as in 2022 the tax rate is about 40 percent from  

my understanding okay so that's a federal estate  tax folks also typically the federal estate tax  

is unified or in line with the gift tax so the  gift tax right now lifetime gift tax is up to  

11.7 million my understanding that will remain  a unified tax system and the gift tax will be  

reduced also to six million dollars what does  that mean in layman's terms you can make gifts  

all the way up to 11.7 million not 11.7 million  dollars now in your lifetime well the new law  

up to six million dollars okay so stay tuned that  is the federal estate tax folks of course here if  

you're in the commonwealth of massachusetts or one  of the states that still has a state estate tax  

you have to keep an eye on that as well because  here in the commonwealth of massachusetts the  

state estate tax is set at a very low threshold  of 1 million dollars one million dollar estate  

death tax here in the commonwealth folks the  second change that i want to go over today is  

the individual tax rates are expected to go up  as well individual tax rates for high earners  

the high earnings tax rate currently is 37 percent  in the highest income tax bracket that's expected  

to increase to 39.6 percent for those high  income tax individuals all right 37 to 39.6  

and then folks capital gains tax capital gains  tax is typically owed or realized when you sell an  

asset when you sell an asset whether that asset is  a piece of real estate or maybe a stock or a bond  

or some type of investment account when you sell  an asset an appreciable asset typically there's  

a capital gains tax that may be owed the current  tax capital gains tax rate highest rate is 23.8  

they're also looking to increase the capital gains  tax rate to 31.8 percent that is correct you heard  

that correctly 31.8 so there you have it folks  these are the proposed tax law changes coming  

down the pike in january and maybe throughout  the year in 2022. we will continue to keep you  

apprised and updated of the tax law changes  and folks you can read about this as well  

a good resource would be the local newspaper south  shore senior news i did an article on page five  

regarding the tax law changes coming down  the pike in january 2022 and i just gave you  

a brief synopsis of that folks hopefully this  video was helpful for you if so please scroll  

down post a question leave a comment also let us  know what you would like to learn about relative  

to estate planning and elder law folks if you'd  like to pick up some educational resources go to  

our website elderlawcare.com or pick up my book  on amazon as well how to slay the metaphorical  

four-headed beast of estate planning and elder law  which is probate court estate death tax financial  

creditors and predators and of course that fifteen  thousand dollar private pay per month nursing  

home okay folks thanks for joining us patrick  kelleher elderlawcare.com we'll see you next time