2006-07-29 13:33:55 · 7 answers · asked by Astrid Beau Bega Belda Calixte 2 in Business & Finance ➔ Personal Finance
Taxes paid on inherited money or property ONLY valued over $2 million. It doesn't apply to anything below that amount.
It only affects 2% of the American population.
It's a federal tax, so is the same in all states.
Here's info:
http://www.irs.treas.gov/businesses/small/article/0,,id=108143,00.html
2006-07-29 13:38:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The estate tax is the "cost" for a deceased person to transfer his or her asset to beneficiaries at death. The estate tax will apply to you if you own more than $2,000,000 in NET assets and die in 2006, 2007 or 2008. In 2009, it will apply to you if you die owning more than $3,500,000 in NET assets. If you own less than this "threshhold" amount (called estate tax exemption amount), then your estate will not pay estate tax when you die. The NET estate is all bank accounts, brokerage accounts, retirement accounts, life insurance proceeds and any other asset owned at death, less debts and expenses. There is a federal estate tax and a state estate tax. The FEDERAL tax is paid by the estate, so when the beneficiary receives assets, the tax has already been paid. The federal estate tax rate is 46% for 2006. In 2007, 2008, and 2009, the federal estate tax rate is 45%. So this is a very steep tax. As for state estate tax, I'm in California, and California does not have an estate tax currently. If you live in another state, you should consult with an estate tax attorney in your state. All citizens of the US will pay the federal estate tax rate, if applicable, and also the state estate tax, if any.
2006-07-29 14:16:57 · answer #2 · answered by coffee4kiki 2 · 0⤊ 0⤋
estate tax is a tax on whats left by someone after their death. In most cases it doesn't kick in till one million dollars federally. states also have the tax check local officals for rate.
2006-07-29 13:38:50 · answer #3 · answered by gglennn@verizon.net 1 · 0⤊ 0⤋
An Estate Tax is a tax collected on property that is passed on after someone dies.
2006-07-29 13:37:26 · answer #4 · answered by Jeremy C 2 · 0⤊ 0⤋
It differs from county to county. If you live in a county where homes have a high price then you'll get taxed more.
2006-07-29 13:36:56 · answer #5 · answered by mathura529@sbcglobal.net 3 · 0⤊ 0⤋
It's home tax
2006-07-29 13:36:10 · answer #6 · answered by Jonas A 4 · 0⤊ 0⤋
just another way to get taxed..
2006-07-29 13:35:50 · answer #7 · answered by 'Cause I'm Blonde 5 · 0⤊ 0⤋