Estate tax in the United States maximum allowable credit is $2 million for that year, so the taxable value is therefore $1.5 million. Since it is 2006, the tax rate on that $1.5 million is 46%, so the total taxes paid would be $690,000. Each beneficiary will receive $1,000,000 of untaxed inheritance and $405,000 from the taxable portion of their inheritance for a total of $1,405,000. This means the estate would have paid a taxable rate of 19.7%. As shown, the 2001 tax act would have repealed the estate tax for one year (2010) and would then have readjusted it in 2011 to the year 2002
Estate tax in the United States the gift tax, applies to transfers of property during a person's life. In addition to the federal estate tax, many states have enacted similar taxes. These taxes may be termed an "inheritance tax". The tax is often the subject of political debate, and opponents of the estate tax call it the "death tax". Some supporters of the tax have called it the "Paris Hilton tax". If an asset is left to a spouse or a federally recognized charity, the tax usually does not apply. In addition, a maximum amount, varying year by year, can be given by an individual, before