How much is the inhert. Tax?
Answers:
There is no inheritance tax for the recipient(s) of an inheritance. Per IRS Publication 525, property received by inheritance is never taxable to the recipient upon receipt, except when the inheritance itself is specifically stated to be the income from the property. Also, remember that while the inheritance itself is not taxable, any future income that it generates (such as putting it into investments that generate dividends, rentals, sale of property, etc) is subject to normal taxation rules.
On the other hand, there is the estate tax. Estate tax is "a tax on your right to transfer property at your death." Everything you own is valued at the date of death (fair market value), and anything over a set amount (currently $2 million) is subject to estate tax, which ranges from 18% up to a maximum of 46%.
Support the FairTax Act proposal before congress. H.R. 25 www.fairtax.org and there will be no inheritance tax. No income tax, no death tax, no paperwork.
WWW.fairtax.org.. The FairTax proposal is a non-partisan comprehensive plan to replace federal income and payroll taxes, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax proposal integrates such features as a progressive national retail sales tax, dollar-for-dollar revenue replacement, and a rebate to ensure that no American pays such federal taxes up to the poverty level. Included in the FairTax plan is the repeal of the 16th Amendment to the Constitution. The FairTax allows Americans to keep 100 percent of their paychecks (minus any state income taxes), ends corporate taxes and compliance costs hidden in the retail cost of goods and services,and fully funds the federal government while fulfilling the promise of Social Security and Medicare.
After truly understanding the FAIRTAX:
The only people who hate it are career politicians, lobbyists, tax lawyers, tax accountants, the non working rich, IRS agents, and illegal aliens.
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