Estate Taxes

by Cassandra Ingraham - Date: 2007-01-07 - Word Count: 298 Share This!

Federal estate tax applies to the transfer of property at death. The estate of a person who died is liable for taxes on the estate. Taxpayers should use Form 706 U.S. Estate Tax Return to file Estate Tax returns. For decedents dying in 2006, Form 706 must be filed by the executor for the estate of every U.S. citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $2,000,000.

The executor of the estate must file returns for the deceased person. This return is due nine (9) months after the date of death. (IRS can extend the time for any payments due up to 10 years) Use Form 4768 to apply for an automatic 6-month extension of time to file.

Life insurance proceeds are included in the estate only IF the proceeds are received by the estate in any way.

The gross estate includes the value of ALL property belonging to the deceased at the time of death.

The value of the property is based upon fair market value at the time of death.

The taxable estate is the gross estate minus the following:

* Administration and funeral expenses

* Claims against the estate

* All outstanding obligations

* Casualty and theft losses

* Marital deductions

* Charitable deductions

It is highly recommended that you hire a Tax professional to complete the Estate Taxes, especially if you do not have access to the decedent's most recent tax returns. All assets are to be listed on the Estate Tax return. If you are not sure of the assets; IRS can help your tax professional with assets that have been reported.

All executors are responsible for the return as filed and are liable for penalties provided for erroneous or false returns.

For more information visit the IRS web site at and put in the keyword: estate taxes

Related Tags: tax, taxes, estate taxes, form 706

Cassandra Ingraham, Internet Marketing Consultant for Small Business Owners. Your Article Search Directory : Find in Articles

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