Questions tagged [estate-tax]
11 questions
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Would cash held in a US brokerage account by a non-resident alien be subject to US estate tax?
According to the IRS page, it seems like the answer is a no, as cash is neither US real estate, tangible property or securities of US companies.
U.S.-situated assets include American real estate, tangible personal property, and securities of U.S.…
Prashanth Chandra
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Maximizing the Cost Basis Reset on Death
Consider the case of a married couple, living in the USA, with appreciated stocks and bonds in a living revocable trust worth between 1 and 5 million dollars. The husband then dies leaving everything to his spouse. There will be no estate due…
Bob
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Estate taxes and the top 1 percent by net worth
According to this website, you need to have over 10 million dollars for your family to be in the top 1 percent by net worth.
However, only about .2 % of estates pay estate tax. The cut off for the estate tax is about 11 million for a married couple.…
Bob
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What's the official reasoning behind "stepped-up basis" when selling inherited property?
Note: "official" here means "on-paper". Meaning: I'm not asking what's the true reason this stepped-up basis calculation exists, but rather how it's justified on paper. This is to prevent this from getting political.
I'm a non-American and was…
zerohedge
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is a US brokerage account for non-resident considered to be a US situs asset?
Assume a person that's not domiciled in the US. That person has a US brokerage / trading account (say in Fidelity or Charles Schwab) that holds shares of various listed companies (both US-based and international companies, i.e. non-US based).
In the…
Marcus Junius Brutus
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How to distribute a partnership K-1 (1065) other income item (line 11B) to heirs on a K-1 (1041)
I have a partnership K-1 (1065) which shows an amount on the "other income" line (line 11B). I am distributing this to the heirs, as the designated recipient died and I am the executor of the estate. But the estate K-1 (1041) does not have a…
user2592431
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Estate tax exemption amount question
The Congress passed the Tax Cuts and Jobs Act during Trump's tenure as the president. One of the facets of this law was the doubling of the Estate Tax exemption from around 5 million to 11 million.
This will likely revert back to 5 million in…
ronald christenkkson
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Gifting The Same Asset Back & Forth - 2x Exemption Used? Or $0 Exemption Used? (U.S.)
I have a question about U.S. estate/gift tax law.
Imagine one person gifts an asset - i.e. a $1 million house - to another, & files a gift tax return in the year in which it was gifted. Then several years later, the recipient wants to gift the same…
J23
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Life insurance rider
My estranged spouse was listed as a rider on my life insurance policy since 1987, we have been separated since 2009 and I have paid all premiums on the policy. My sons are the beneficiaries on the policy. The policy was for $54,000 and my estranged…
Linda
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U.S. Estate/Gift Tax: If Previously Gifted Asset Is Brought Back Into Estate At Death, How To Account For Prior-Filed Gift Tax Return?
This question is about U.S. estate/gift tax law.
Imagine a scenario where a parent gifts an asset to the child, i.e. a $500k house, in an irrevocable grantor trust. It's a "completed gift" in that they file a gift tax return, & use up $500k of their…
J23
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What stops someone from abusing the Annual Gift Exclusion Amount?
Let's assume this hypothetical.
My son is now 18 years old. Since he was 8, I've been setting aside the annual gift exclusion amount and placing it in a safe in my house. With snipers guarding said safe :)
4 People are involved.
My brother, my…
Outdated Computer Tech
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