Posted: 6/26/2007 1:37:04 AM EDT
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If I understand this correctly the current tax laws state than anything over $2,000,000 is subject to a 40% death tax? and in 2008 or 2009 (which is it?) that the limit goes up to $3,500,000 for one year and the next year drops to $600,000.00? Is this correct? IPSC |
Communist manifesto thing. ETA: Generally, you do not need to file a gift tax return unless you give someone, other than your spouse, money or property worth more than the annual exclusion ($11,000 in 2002, 2003, 2004 and 2005; $12,000 beginning in 2006) for that year. Although a return may be required, no actual gift tax will become payable until the cumulative lifetime taxable gifts exceed the applicable exclusion amount. The donor is primarily responsible for the payment of the Gift Tax. To reemphasize: Most relatively simple estates (cash, publicly traded securities, small amounts of other, easily valued assets and no special deductions or elections or jointly held property) with a total value under $1,000,000 and a date of death in 2002 or 2003 and $1,500,000 and a date of death in 2004 or 2005 do not require the filing of an estate tax return. To find out more, refer to Estate and Gift Tax Introduction. This from the IRS: http://www.irs.gov/businesses/small/article/0,,id=98968,00.html Inheritance tax is a state thing, the feds call it estate |
| It's actually a state thing. It's total BS! What needs to be done is the person in question needs to get a lawyer draw up a trust etc. there are also other ways around it. Of course.. CASH IS KING! If you have 2 mill in cash. and you give it away. Who's going to tax it? :) |
It is a fedral tax actually. Some states do have there own version. Ever heard of a CTR? It is the form your bank files when a withdrawl or deposit of $10,000 or more gets made. You would draw some attention. |
I do not know the numbers, but in general yes. It was not permanently enacted, so it reverts back to whatever it was before it was passed. Kinda like the AWB. I wonder if there will be an uptick in murders of rich relatives in December of the final year. |
| there are ways to bypass taking a hit from the gov concerning inheritance tax. My Grandmother has put my dad's name jointly with all of her accounts, home, and other such stuff, so if i understand it correctly when she dies her name is stricken from the accounts and they solely become his without inheriting them. |