Summary Estate Tax

Summary Estate Tax - Summary The federal estate tax is a...

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Summary The federal estate tax is a tax imposed on the transfer of a decedent's taxable estate at death. The federal estate tax applies not only to estates of U.S. citizens and residents but also to estates of nonresident aliens. In the case of the estate of a nonresident alien, the federal estate tax is imposed on the decedent's property that was situated in the United States. The personal representative of the estate of a U.S. citizen or resident dying in 2011 must file IRS form 706 [United States Estate (and Generation-Skipping Transfer) Tax Return] if the value of the decedent's gross estate on the date of the decedent's death, plus the amount of adjusted taxable gifts made by the decedent after December 31, 1976 and the aggregate amount allowed as a specific exemption with respect to gifts made by the decedent after September 8, 1976 and before January 1, 1977, exceeds $5,000,000. The personal representative of the estate of a nonresident alien must file IRS Form 706-NA [United States Estate (and Generation-Skipping Transfer) Tax Return] if the value of the decedent's gross estate situated in the United States, plus the amount of the adjusted taxable gifts made by the decedent after December 31, 1976 and the aggregate amount allowed as a specific exemption with respect to gifts made by the decedent after September 8, 1976 and before January 1, 1977, exceeds $60,000. If no person is appointed, qualified, and acting in the United States as a decedent's personal representative, every person in actual or constructive possession of any of the decedent's property is required to file an estate tax return. Unless an extension of time for filing has been granted by the IRS, the due date for filing an estate tax return is the day of the ninth calendar month after the decedent's death corresponding to the day of the calendar month on which the decedent died. The IRS will grant the personal representative of the estate of a U.S. citizen or resident (but not the estate of nonresident alien) an automatic six-month extension of time to file IRS Form 706 if the personal representative files IRS Form 4768 [Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes] on or before the due date for filing IRS Form 706. The IRS may grant a reasonable extension of time (not exceeding six months, unless the personal representative is abroad) to file an estate tax return upon a showing of good and sufficient cause. IRS Form 4768 must be filed to request such an extension. The federal estate tax is computed as follows: First, the value of the decedent's gross estate is determined. Second, the estate's allowable deductions are subtracted from the value of the decedent's gross estate. The result is the decedent's taxable estate. Third, the amount of the decedent's adjusted taxable gifts made after 1976 is determined and added to the amount of the decedent's taxable estate. Fourth, the amount of federal estate tax owed on the sum of the decedent's taxable
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Summary Estate Tax - Summary The federal estate tax is a...

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