Georgia Wills

What determines a valid will under Georgia law? There are four requirements: the maker of the will must be over the age of 14. the will must be written, the will must be signed by the maker or on his behalf  and witnessed in writing by at least two credible persons over the age of 14 who are not beneficiaries, and the maker of the will has to have the capacity to do a will. Capacity means that the person has the ability to understand the process and is not being forced to make the will. This last requirement is frequently litigated.

Georgia Path2College 529 Plan

Georgia has just passed a new law to double the state deduction for joint filers for section 529 plan contributions from $2,000 per beneficiary to $4,000 per beneficiary beginning with the 2016 tax year. This will be a help to families trying to save for their children and grandchildren's college education costs. Contributions to other state plans do not qualify for the Georgia deduction.

Change of Address

If you are moving this summer, you may want to fill out form 8822  to inform the IRS of your new address. This is important if you are getting a refund mailed to you or if you expect any IRS notices. It is a one page form that can be obtained online at irs.gov. It can take the speedy IRS 4 to 6 weeks to process the form.

The 0% Capital Gain Rate

Long term capital gains on sales are subject to more favorable tax rates than ordinary income like wages. If your 2015 taxable income was under $74,900(filing joint) or $37,450(single), then all of your capital gains were taxed at 0%. It is possible for a capital gain to be taxed at various rates depending on how much ordinary income you have. For example, if you (filing single) have no ordinary income, a capital gain of $500,000,  and taxable income of $493,700 after the standard deduction and exemption deduction, then the tax at capital gain rates would be: $37,450 at 0%, $375,750 at 15%, and $80,500 at 20% for a total of $72,463.  The marginal  income tax rate would be 39.6% or $151,874 in regular tax if it was $500,000 in ordinary income.