Q. Two questions: First, I am thinking of purchasing a used truck. How much depreciation can I take? Secondly, I have heard talk about estate laws changing in 18 months. What is the deal?
A. Regarding the truck…Does the truck weigh over 6,000 pounds? The weight of the truck makes a difference on the depreciation.
The estate tax question is a tough one. The problem is, if the current rules are not extended, we go back to the rules 10 or so years ago, and there will be estate tax due on anything over $1 million. Currently, that number is $5 million per husband and wife and what the first to die does not use, flows over to the survivor. In essence, a couple has $10 million to work with.
Most experts feel that there is no way that the government will allow the estate tax floor to fall back to the $1 million level, but who knows. The problem is that to balance the 10-year budget, they work the estimated estate taxes in based on the lower level.
