WOODBURY, N.Y., June 27, 2014 /PRNewswire-iReach/ — On April 1, 2014, Governor Cuomo signed into law the Executive Budget of 2014-2015. Gettry Marcus, a top tax, consulting and forensic accounting firm, discusses the legislation, which includes significant changes to the way estates of New York residents (and nonresidents owning tangible property in New York) are taxed.

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Under prior law, which was effective for decedents dying before April 1, the tax was based on the old federal state death tax credit. The maximum rate was 16 percent, with an exemption of $1 million (which effectively phased out at about $1.1 million). There was no state gift tax, and no adjustment was required for lifetime gifts in computing the taxable estate.

The new law makes three significant changes:

• Although there is still no state gift tax, taxable gifts for federal purposes must be added to the New York taxable estate if made between April 1, 2014 and December 31, 2018, and during the 3-year period ending on the date of death.

• The exemption is increased to $2,062,500 and will increase by over $1 million each year until 2019, when it will equal the federal exemption (projected to be approximately $6 million).

• When the taxable estate exceeds 105 percent of the exemption, it will be fully phased out. This is the most controversial part of the new law. Although the highest nominal rate remains at 16 percent, the accelerated exemption phase-out creates a “cliff”, resulting in effective marginal rates of over 100 percent.

These dramatic changes may result in a win, loss, or draw compared to the old regime, depending on the circumstances of each family. Proper planning is more important than ever.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Gettry Marcus CPA, P.C. is a top New York City and Long Island CPA firm with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include real estate and health care. We have one of the premier and most credentialed business valuation, litigation and forensic accounting groups in the New York Area. Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.

Gettry Marcus is “Always Looking Deeper” to build value for our clients.

Media inquiries: Contact Fayellen Dietchweiler at 516-364-3390 ext. 225 or at

fdietchweiler(at)gettrymarcus(dot)com

Media Contact: Fayellen Dietchweiler, Gettry Marcus CPA, P.C., 516-364-3390 x 225, fdietchweiler@gettrymarcus.com

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SOURCE Gettry Marcus CPA