Welcome to tax law Guide
Texas Tax Lien Law 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.
Inheritance Tax Law – What Will You Pay?
from: www.TaxesExposed.comIf you have recently inherited money from a deceased relative, you may be confused about inheritance tax law and how it will affect your taxes this year. Inheritance tax law is somewhat complicated, particularly because of the “phase out” period that these taxes are going through right now. But, here are some basics to get you started if you’re trying to determine if you’ll owe inheritance tax this year.
• You do not pay inheritance tax if you’re the spouse of the deceased – If your husband or wife dies, according to inheritance tax law, you’re generally not subject to inheritance taxes on the money you receive as part of your spouse’s estate.
• You do not pay inheritance tax on life insurance – Generally, life insurance proceeds you receive are not subject to inheritance tax and are also not considered reportable income. However, any interest you receive on a life insurance policy is income that you must report.
• You do not pay inheritance tax on estates worth less than $2,000,000. – This inheritance tax law is currently subject to the Economic Growth and Tax Reconciliation Act of 2001. So, if a relative dies in 2006, 2007 or 2008, you are not subject to inheritance 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 In 2009, this amount will increase to $3,500,000 and in 2010, the estate tax will be repealed altogether.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 inheritance tax only up to $1,000,000.
• You Cannot Avoid Inheritance Tax by Acquiring the Money Just Before a Person Dies – If your relative turns over their fortune to you just before their death, what you receive may still fall under the inheritance tax law requirements, under the gift tax law. Each year, a person can give away up to $12,000 per person without any gift tax being incurred. A couple can give away double this amount. However, there is a lifetime limit to one person of $1,000,000 before inheritance tax law kicks in. There are many other caveats to how the gift tax works, so it’s wise to consult your tax advisor before making or receiving cash gifts.
If you have received an inheritance this year, get with your tax advisor sooner rather than later to determine the exact tax implications for you. In general, if the adjusted estate is worth less than $2,000,000, you are not subject to inheritance tax law says you don’t have to pay. However, it’s always wise to have an expert look at your particular situation before it’s time to file those year end taxes.
Christine Gray is a recognized authority on the subject of Online Taxes. Her website Taxes Exposed provides a wealth of information on everything you will need to know about Tax Law. All rights reserved. Articles may be reprinted as long as the content and links remains intact and unchanged.
Texas Tax Lien Law News
Premack: There are multiple downsides to receiving a house by gift - San Antonio Express
Premack: There are multiple downsides to receiving a house by gift San Antonio Express If the house if free of lien, there are no such restrictions. Second, consider the federal gift tax issue. Your mother, like all of us, has two gift tax exemptions. The first is her annual allowance – authorization to gift up to $13000 per year, ... |
THE CHIEF"S APPRAISAL: Several different directions possible for foreclosed ... - Odessa American
THE CHIEF"S APPRAISAL: Several different directions possible for foreclosed ... Odessa American The Texas Constitution and the Property Tax Code both provide that an automatic tax lien attaches to property every January 1st for that tax year. The lien is in favor of all taxing entities that have the legal authority to tax the property. |
Sovereign Citizens v. FBI - Auburn Journal
 Auburn Journal | Sovereign Citizens v. FBI Auburn Journal By ThosPayne Reuters reports that the FBI is warning law officers and concerned citizens about the threat posed by anti-government right-wing extremists. Calling themselves Sovereign Citizens, the movement opposes "big government" taxes and regulations ... |