ESTATE AND GIFT TAX EXEMPTION: WHAT BUSINESS OWNERS SHOULD KNOW



By Christopher Sargent, CPA/ABV, AM

Senior Analyst, Valuation & Litigation Services

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The estate and gift tax exemption, currently at approximately $13.61 million per individual, is set to revert to around $5-6 million after 2025 unless legislative action intervenes. However, with Donald Trump re-elected for a second term and Republicans controlling both chambers of Congress, there is speculation that the exemption could be extended or even made permanent. This possibility introduces both opportunities and challenges for business owners considering gifting or transferring their ownership interests to mitigate future tax exposure.

Should the exemption sunset as scheduled, estates exceeding the reduced threshold could face a tax rate of up to 40%. For business owners, this could result in substantial estate taxes on closely held businesses. Acting now to transfer ownership under the higher exemption could lock in savings, but uncertainty about whether the exemption will be extended complicates the decision-making process. If the exemption is preserved under the Trump administration, the urgency to act might diminish, allowing for more measured planning.

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EASY WAYS TO FIGHT INFLATION

By Lisa Purichia

Partner, Director of Accounting Services & Retirement Plan Services

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We're in the midst of a critical time for small businesses. According to the U.S. Small Business Administration, eight in 10 small businesses lean on holiday sales to meet their yearly profit goals. The stakes are especially high this holiday season, as small businesses continue to combat inflation. Surveys from the National Federation of Independent Business show that many of these businesses plan to raise prices.

The good news is that consumers seem ready to shop small and local this holiday season. In a recent Constant Contact survey, 78% of the 3,000-plus consumers surveyed said they "plan to holiday shop at a small business they have never purchased from before."

As a small business owner, what can you do to attract and retain these consumers?

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