Will Hoosiers See Tax Breaks?By Terry W. Prather CFP®, ChFC®
Indiana House Bill 1001 awaits Governor Mike Pence’s signature to become law. One key part of this bill would be a full repeal of Indiana’s inheritance tax retroactive to January 1, 2013. Due to legislation enacted last year, the inheritance tax is currently in a gradual “phase out” until its complete elimination in 2022. By accelerating the repeal, House Bill 1001 would provide additional immediate relief to many heirs in the meantime.
Another tax cut in this bill is the reduction (although less than Gov. Pence’s proposal) of the Indiana individual income tax rate from 3.4% to 3.3% in 2015, then to 3.23% in 2017. For many Hoosiers this cut isn’t substantial in dollar terms, but it’s certainly a step in the right direction. For example, a couple with $250,000 of taxable income would see tax savings of $250 in 2015.
The wealth planning team at Payne Wealth Partners will continue to monitor tax legislation like this to help our clients navigate and understand how it may impact their specific personal situation. www.paynewealthpartners.com