Welcome to taxes Guide
Filing Income Taxes 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.
Happiness Equals Little or No Inheritance Taxes
from:When one is chosen as an executor of a will, dealing with the assets of an individual who has passed can mean dealing with estate or inheritance taxes. While the two are commonly confused, estate taxes have to do with the property or estate itself whereas inheritance taxes affect the estate's beneficiaries. Another difference is that estate tax is levied by the federal government whereas an inheritance tax is imposed by the state. Rates for inheritance tax can vary from state to state with some states imposing no tax at all. Regardless of the number of beneficiaries, each will be taxed and required to pay his or her own share.
With estate taxes, the executor is obligated to pay dues to the government using monies left behind as part of the estate. If there is none, assets must be sold to meet the duty or the obligation to pay will be passed down onto the estate's inheritors. This can also be true of inheritance taxes paid to the state. Taxes can be figured not only by applying the current tax rate but also by the relationship of the heir to the decedent. Spouses and children will see themselves taxed lower than the other types of beneficiaries, such as distant relatives or friends. The required amount of taxes can also be based on the property's fair market value. If the beneficiary cannot pay the taxes due, once again, it is likely the assets will need to be sold to satisfy the obligation.
There are many complexities when it comes to estate planning and taxes but it does have its pluses. When faced with both inheritance taxes and estate taxes, it is possible to ease the burden on heirs by stipulating that all inheritance taxes be paid with monies from the estate. Using the help of a financial planner who is well versed in estate planning, a detailed portfolio can be made providing access to any and all necessary financial documents the government may need upon a person's death. Other options for limiting or doing away with inheritance tax altogether can also be put in place.
Since each state has its own guidelines when it comes to inheritance taxes, a competent estate planner should be local as well as knowledgeable about current tax codes. The two taxes are often at the center of a great debate and both estate and inheritance taxes find themselves in a constant state of flux. Those who attempt to manage their own estate planning can leave their heirs in a very precarious tax situation that ends up being of benefit to no one.
Filing Income Taxes News
First Person: The 6 Common Tax Return Errors We All Keep Making
When it comes to filing taxes, the unfortunate truth is it is easy to get them wrong. About one out of five of us will file an amended return at some point to correct a mistake or two on our original filing.
Read more...Eureka man indicted for allegedly not filing state income taxes for 3 years
A Woodford County grand jury indicted a man accused of not filing state income taxes for three years. Randal L. Fitschen, 54, was charged with three counts of willful failure to file an Illinois income tax return. Each felony count is punishable by three years in prison and a $25,000 fine.
Read more...IROC Energy Services Corp. announces record first quarter results, filing of interim financial statements, and ...
IROC Energy Services Corp. announces record first quarter results, filing of interim financial statements, and declaration of quarterly dividend
Read more...Last Day for Louisiana Residents to File State Income Taxes
Today is the last day for Louisiana residents to file their state income taxes. If you need an extension today is the last day to request one.
Read more...Strike two for tax bureau
THE BUREAU of Internal Revenue (BIR) missed its collection target in April despite the filing of annual income taxes that month.
Read more...