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2013: The Year the Hammer Falls on IRD2013: The Year the Hammer Falls on IRD

Planning strategies can mitigate the tax cost

Christopher R. Hoyt, Professor of Law

June 1, 2012

20 Min Read
2013: The Year the Hammer Falls on IRD

Who can accurately predict what the income tax and estate tax rates and thresholds will be in the year 2013? Nobody. In 2010, Congress extended the Bush income tax cuts and enacted a relatively low 35 percent estate tax rate for 2011 and 2012, but few expect a repeat of that scenario for 2013. 

If nothing is done, tax rates on many sources of income will increase in 2013. Dividends are slated to experience the steepest tax rate increase, from a maximum federal rate of just 15 percent in 2012, to a new maximum federal rate of 43.4 percent in 2013 (See “Something Old, Something New,” p. 42). Another source of income that could be hit particularly hard in 2013 is income in respect of a decedent (IRD), particularly IRD that’s included in est...

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About the Author

Christopher R. Hoyt

Professor of Law, University of Missouri

Christopher R. Hoyt, JD is a Professor of Law at the University of Missouri Kansas City School of Law where he teaches courses in the area of federal income taxation and business organizations.  Previously, he was with the law firm of Spencer, Fane, Britt & Browne in Kansas City, Missouri.  He received an undergraduate degree in economics from Northwestern University and he received dual law and accounting degrees from the University of Wisconsin.

Professor Hoyt has served as the Chair of the American Bar Association’s Committee on Charitable Organizations (Section of Trusts and Estates) and is on the editorial board of Trusts and Estates magazine. He is an ACTEC fellow, has been designated by his peers as a “Best Lawyer”, and was elected to the Estate Planning Hall of Fame by the National Association of Estate Planners & Councils.  He is a frequent speaker at legal and educational programs and has been quoted in numerous publications, including The Wall Street Journal, Forbes, MONEY Magazine, The New York Times and The Washington Post