Estate Tax Exemption Killer IRS Tax Information
Estate Tax Exemption Changes And Qualifications
For 2009, the federal estate taxes apply only for estates larger than 3.5 million (up from 2 million in 2008). Most people would not be subject to pay a federal estate tax on their inherited property. There are few tax law exemptions and deductions that may leave you estate tax free.If the transfer of the estate was done in 2009, the personal exemption is 3.5 million. In other words, if your property value is less than 3.5 million you don’t owe any estate taxes. If your estate value is more than the amount excluded through the new estate tax exemption, you have to pay taxes on the excess.
Your Tax Exemption May Be Reduced By Large Amounts Of Taxable Gifts You Made
You have to take into consideration the amount of taxable gifts you report during the year. There is a limit amount of $1,000,000 for gifts you can give during your lifetime. If you report more than the limit imposed, this may affect your personal estate tax exemption. Your tax exemption may be reduced.
Marital Deduction Applies Only For Property Left To Citizen Spouses
All the property left to a surviving spouse is estate tax free. The marital deduction applies only for property left to spouses who are U.S. citizens. However, if the surviving spouse is not a citizen, she can still qualify for personal estate tax exemption.In addition, other deductions and exemptions include: certain charitable contributions, administration expenses, and claims against the estate.If you are subject to federal estate tax, call a tax negotiator in a timely manner. Knowing most of the exemptions and deductions you can qualify for, they will help you reduce your tax estate liability.