Preservation | Family Wealth Protection & Planning

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for March 2023. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

How many times have you prepared your income tax returns for the previous year, only wishing you knew then what you know now, so you could go back and make more advantageous tax decisions? In most cases, you are stuck with the decisions you made before the new tax year began, even though you may not have all the relevant tax information available to assist with those decisions until several months into the new tax year. Too bad, says the IRS, unless you are an estate or trust.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for February 2023. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for January 2023. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for December 2022. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for November 2022. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

Missouri Gov. Mike Parson recently signed into law legislation that reduces the state's individual income tax rate.

The law, signed on Oct. 5, 2022, and effective for the 2023 calendar year, reduces the top individual income tax rate from 5.2 percent to 4.95 percent. It also eliminates the bottom income tax bracket, allowing Missourians to earn their first $1,000 tax-free. In addition, the law allows for an additional 0.15 percent top income tax rate reduction to 4.8 percent when Missouri’s net general revenues increase by $175 million and another 0.1 percent top income tax rate reduction in future years when net general revenue of the state increases by $200 million. If Missouri’s revenue increases as stated above and the corresponding rate reductions take effect, the new legislation will reduce the top income tax rate in Missouri to 4.5 percent.  

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for October 2022. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

Wolters Kluwer and Bloomberg Tax have released projected 2023 figures for the gift tax annual exclusion amount as well as the estate and gift tax lifetime exemption amount. These figures were determined using formulas contained in the Internal Revenue Code. They are based on the increase in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the 12-month period that ended August 31, 2022.

Because of storms and flooding in the St. Louis area over the summer, the IRS recognized the city of St. Louis and Montgomery, St. Charles, and St. Louis counties in Missouri as a disaster area. As a result, taxpayers in the disaster area may qualify for tax relief including possible extensions for filings and payments until Nov. 15, 2022.