Posted By admin on May 24, 2009
Credits against federal estate taxes are allowed for the following:
a. Credit for estate taxes paid to the state. There is a maximum limit for the amount of this credit.
b. Credit for federal gift tax paid on gifts regarded by Internal Revenue Service to be a part of the estate for estate tax purposes.
c. Credit for taxes paid on transfers of property received from previous estates.
d. Credit for foreign death taxes paid.
e. Federal Estate Tax and Gift Tax Credit.
• Federal Estate and Gift Tax Credit. The following credits are effective against estate taxes for decedents and for gifts made after 2006. The credit is applied against either the gift tax or estate tax, not as a deduction against the taxable value of the estate. Note that the credit was increased over time. In 2007, a decedent with an estate of less than $2,000,000 will not have to pay estate taxes.
• Credit for State Death Taxes. After December 31, 2004, the state death tax credit has been replaced by a deduction for state estate taxes.
• Installment Payment of Estate Taxes. If the closely-held business interest exceeds 35% (formerly 65%) of the adjusted gross estate, the taxes attributable to that interest may be deferred up to 14 years; annual interest payments may be paid for the first four years and the balance may be paid in up to 10 annual installments of principal and interest. The annual interest rate is 2% on the first $1,000,000 of taxable value. There will be a cost of living adjustment on the portion of estate’s taxable value that qualifies.
Category: Credits, Tax |
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Tags: Credits, estate, Estate tax, tax credit, taxes
Posted By admin on May 18, 2009
Estimating the tax liabilities under different alternatives is a part of good estate planning. The tax estimates and other transfer costs should include the costs for both the husband and wife. Well thought-out plans will explore the potential tax burden resulting from the unexpected death of either husband or wife.
Category: Estate tax |
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Tags: Estate tax, liabilities, tax return, taxes
Posted By admin on February 22, 2009
True ownership is primarily supported by a good chain of title. The chain of title provides a list of all conveyances and other documents recorded against the property. The chain of title should indicate that all of the conveyances between buyers and sellers are legitimate and unbroken. For example, Fred sold to Gene, Gene sold to Harriet, Harriet sold to Indira, and Indira sold to Jesse.
The chain should be uninterrupted. For example, the chain of title should not indicate that Quentin sold to Roy, and then Ursula sold to Vivian. How did the title get from Roy to Ursula?
In addition to recording conveyances, however, the title records will also record liens, easements, leases and other documents. The title examiner must be able to see through that clutter and clearly identify the rightful chain of title. However, the title examiner must also examine those other recorded documents to be sure that they no longer present a cloud on the title. For example, previously paid mortgage and other liens from the past should have a matching release of lien, indicating that they have been satisfied and no longer pose an encumbrance.
Category: Title |
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Tags: buyer, credit, property, real estate, seller, Title