![2013: The Year the Hammer Falls on IRD 2013: The Year the Hammer Falls on IRD](https://eu-images.contentstack.com/v3/assets/bltabaa95ef14172c61/blt1ba40f87457ee8d9/67336964a8d9f1d63e9bae25/retirement-595x335_0.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
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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