ccording to the Internal million fifty thousand dollars.
Revenue Service (IRS), an The Estate Tax value is expected
Estate Tax is a tax that is to increase up to two million
imposed on your right to transfer dollars for the 2006 year. In
your property and belongings addition to meeting a certain
after your death. The individual estate value, it is also likely
who is in charge of handing and that the majority of properties
filing an Estate Tax return is that are jointly owned will not
often the estate representative. be taxed if at least one property
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There are certain restrictions An Estate Tax return is due to be
for estates that are subject to submitted to the Internal Revenue
the Estate Tax. Each year tax Service (IRS) nine months after
laws are updated or completely the estate owner passed away. As
changed; therefore, estate with regular tax returns, it is
representatives or family members possible for estate
are encouraged to review the new representatives or family members
Estate Tax laws. At the current to obtain a deadline extension.
time, the majority of estates are If tax is owed on the estate, it
not subject to an Estate Tax if still needs to be paid before the
they are valued at less than one nine months arrives even if an
Estate Tax return deadline was documents that must be sent along
granted. Not paying the estimated with the return. These items
amount of estate taxes due can include a copy of a death
result in late fees or additional certificate, copies of property
penalties. appraisals, copies of litigation
documents that may apply to the
The Internal Revenue Service estate property, and a copy of
(IRS) will determine the amount the deceased’s will. As
of Estate Tax owed by taking the previously mentioned, an Estate
fair market value of all property Tax return can be filed by a
items that were previously owned lawyer, an estate representative,
by the estate owner before he or or a family member. Individuals
she passed away. Fair market can acquire the Form 706: United
value takes into account when an States Estate (and Generation -
item was purchased and exactly Skipping Transfer) Tax Return by
how much it is worth today. When contacting the Internal Revenue
all of those items are added up Service (IRS) or by downloading
the total is referred to as the the form online.
Gross Estate. As with traditional
tax returns, estate taxes are Only a small percentage of
allowed tax credits and tax Americans are required to file
deductions. When all of these for an Estate Tax return;
items are computed together the however, that does not mean that
amount of tax owed will be taxpayers do not need to know and
determined. understand what an Estate Tax is.
A taxpayer may not own a high
When an Estate Tax return is valued property; however, that
being filed with the Internal does not mean that they cannot
Revenue Service (IRS) there are a inherit one or be named an estate
number of other important representative by a friend or
family member who has passed on.
About the Author:
Gray Rollins is a featured writer for the TaxHelpDirectory.com. To learn more about the estate tax and for info about tax lawyers, visit our site.
