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estate and gift tax rates

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B

bethannebowen

Guest
what is the estate tax rate and exemption amount?
If there is a trust left, when do the beneficiaries pay taxes on the income, whn there are captal gains or when stocks and bonds are sold, or never? Thanks
 


W

Whaleman72

Guest
Estate tax rates start at 37% for the first dollar over the exemption amount which in year 2000 is $675,000 per person going up to $1,000,000 in 2006. The rates increase and can be as high as 55% on an estate over $3,000,000.
At death, heirs receive a stepped up basis on the deceased's assets. In other words, if the deceased bought stock at $50 and then died when it was worth $100, the heirs receive the stock at $100 cost basis. No capital gains are owed upon sale over the $100 bais.
Income tax is due on any income derived from the assets on a year to year basis (on dividends, interest, etc.)
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by bethannebowen:

what is the estate tax rate and exemption amount?
If there is a trust left, when do the beneficiaries pay taxes on the income, whn there are captal gains or when stocks and bonds are sold, or never? Thanks
<HR></BLOCKQUOTE>



[This message has been edited by Whaleman72 (edited February 28, 2000).]
 
W

Whaleman72

Guest
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Whaleman72:
Estate tax rates start at 37% for the first dollar over the exemption amount which in year 2000 is $675,000 per person going up to $1,000,000 in 2006. The rates increase and can be as high as 55% on an estate over $3,000,000.
At death, heirs receive a stepped up basis on the deceased's assets. In other words, if the deceased bought stock at $50 and then died when it was worth $100, the heirs receive the stock at $100 cost basis. Capital gains are owed only upon sale and only on amounts over the $100 bais.
Income tax is due on any income derived from the assets on a year to year basis (on dividends, interest, etc.)


[This message has been edited by Whaleman72 (edited February 28, 2000).]
<HR></BLOCKQUOTE>

 

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