Federal Estate Tax
Click Links Above To Order HR Block TaxCut Software, Get Started Now!
Estate Tax
When you die, the money and property you own (your estate) may be subject to
federal estate tax if the estate is
worth more than the applicable exclusion
amount.
The estate tax in the
United States is a tax imposed on the
transfer of the "taxable estate" of a
deceased person, whether such property
is transferred by will or according to
the state laws of intestacy
It consists of an accounting of
everything you own or have certain
interests in at the date of death (Refer
to IRS Form 706).
The current fair market value
of these items is used. The
total of all of these items is your
"Gross Estate." The gross
estate may consist of cash, securities, real
estate, insurance, trusts, annuities,
business interests and other assets.
Estate Tax is part of
the Unified Gift and Estate Tax system
in the United States.
Gift Tax, another part
of the system, imposes a tax on
transfers of property during a person's
life; the gift tax prevents avoidance of
the estate tax should a person want to
give away their estate just before
dying.
Many states also impose an estate tax,
with the state version called either an
estate tax or an inheritance tax.
If an asset is left to a spouse or a
charitable organization, the tax usually
does not apply.
Gifts that
aren't taxable include tuition, medical
expenses, gifts to your spouse, gifts to
a political organization and charitable
donations.
If you gave someone gifts valued more
than $12,000, you must report the total
gift to the IRS and may have to pay tax
on the gifts. If you're Married Filing
Jointly, the tax-free amount doubles to
$24,000. If you or your spouse make a
gift to a third party, the gift can be
considered as made half by you and half
by your spouse (gift
splitting).
The person who receives your gift
doesn't have to report it to the IRS or
pay gift or income tax on its value.
Reduced Tax on Appreciated Securities
If you give your child appreciated
securities (such as stock or mutual fund
shares), the tax bill on the increase in
value is passed on to the child along
with the gift.
TaxReturnRelief.com US tax help: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, H, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, New NH, New NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY
|
