Welcome to tax law Guide
New Bankruptcy Law Tax Return Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
Estate Tax Law – Understanding the Amount You’ll Owe?
from:When you gain an inheritance from a deceased loved one, it’s important to understand how your taxes might be affected. Estate tax law has gone through several changes over the last few years, and the changes are still occurring. These taxes are going through a phase out right now, so you need to know the details of the changes in order to understand how your taxes will be affected in the year after you inherit an estate. Here are some of the basics:
• Spouses don’t pay estate tax. If your husband or wife dies, according to estate tax law, you’re generally not subject to estate taxes on the money you receive.
• You don’t pay estate tax on estates worth less than $2,000,000. – This estate tax law is part of the phase out that the laws are going through right now. The Economic Growth and Tax Reconciliation Act of 2001 was designed to put more money back in taxpayer’s pockets by giving them some relief from certain taxes, including estate taxes. So, if a relative dies in 2006, 2007 or 2008, you are not subject to estate tax if their taxable estate is worth less than $2,000,000. In 2009, this amount will increase to $3,500,000 and in 2010, the estate tax will be repealed altogether. However, unless Congress acts, beginning in 2011, the estate tax will return, and you will be exempt from estate tax only up to $1,000,000.
• The Gift Tax Still Applies – Many people try to bequeath their money before their death to avoid their relatives having to pay estate tax. However, if your relative turns over their fortune to you just before their death, what you receive may still fall under the estate tax law requirements, under the gift tax law. The law only allows a person to receive $12,000 each year from a single source before gift tax must be paid. And, there is a lifetime limit, too. A person can only give away $1,000,000 in a lifetime to a given person before that person is subject to gift tax. The gift tax laws are somewhat complicated, so it’s wise to consult a tax attorney before you make or receive cash gifts, so that there are no surprises at tax time.
• Life Insurance doesn’t count – Generally, estate tax law says a payout you receive from life insurance proceeds are not subject to estate tax and are also not considered reportable income. However, any interest you receive on a life insurance policy is income that you must report.
New Bankruptcy Law Tax Return News
101 ETF Lessons Every Financial Advisor Should Learn
Exchange-traded funds (ETFs) have burst on to the scene in the last few years, raking in hundreds of billions of dollars in assets and prompting a major shift towards indexing strategies in the process. ...
Read more...May 20: Ryan, Durbin, Booker, Murphy, Cramer, Strassel
MR. DAVID GREGORY: This morning, the president on the world stage, hosting global leaders at two high-profile summits, and the agenda has as much to do with the U.S. economy as Europe's.
Read more...Research and Markets: Federal Tax Litigation
Dublin - Research and Markets has announced the addition of the "Federal Tax Litigation." subscription to the
Read more...Obama's Southern Discomfort (The Note)
By MICHAEL FALCONE (@michaelpfalcone) and AMY WALTER (@amyewalter) NOTABLES: WHITE VOTER PROBLEMS. The results of yesterday’s primaries in Arkansas and Kentucky, as well as fresh polling numbers from Florida today, highlight a key challenge President Obama faces this election cycle: He not only has to...
Read more...Gubernatorial Candidate Profile: Jim Lynch
Capitol reporter Marnee Banks has posed questions to each of the candidates who are running to become the next governor of Montana.
Read more...