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The new federal
estate and gift tax schedule was prepared in conjunction with
the new unified credit and exemption provisions. Gift and
estate transfers are taxed at the same rate.
The taxable estate is
the total value of the estate less the exemptions and
deductions allowed by the Internal Revenue Service. Expenses
and debts are subtracted from the gross estate to determine
the taxable estate. The taxes are calculated according to the
tax schedule. From the calculated tax, a tax credit is allowed
before taxes due are tabulated. Expenses and debts allowed
include funeral expenses actually spent out of the estate
(with a reasonable limit placed on the deduction for a
monument), actual expenses occurred in settling the estate,
debts or claims against the estate, business expenses, and
casualty losses. If there is a surviving spouse, a marital
deduction for any property passing to a spouse may be taken,
and each estate is eligible for a tax credit.
Federal
estate and gift tax schedule for deaths as of December
1987.
|
If
taxable estate is at least |
Tax
liability is |
Plus |
Of
excess value over |
|
($) |
($) |
(%) |
($) |
|
0 |
0 |
18 |
0 |
|
10,000 |
1,800 |
20 |
10,000 |
|
20,000 |
3,800 |
22 |
20,000 |
|
40,000 |
8,200 |
24 |
40,000 |
|
60,000 |
13,000 |
26 |
60,000 |
|
80,000 |
18,200 |
28 |
80,000 |
|
100,000 |
23,800 |
30 |
100,000 |
|
150,000 |
33,800 |
32 |
150,000 |
|
250,000 |
70,800 |
34 |
250,000 |
|
500,000 |
155,800 |
37 |
500,000 |
|
750,000 |
248,300 |
39 |
750,000 |
|
1,000,000 |
345,800 |
41 |
1,000,000 |
|
1,250,000 |
448,300 |
43 |
1,250,000 |
|
1,500,000 |
555,800 |
45 |
1,500,000 |
|
2,000,000 |
780,800 |
49 |
2,000,000 |
|
2,500,000 - 3,000,000 |
1,025,800 |
53 |
2,500,000 |
|
Over
3,000,000 |
1,290,800 |
55 |
3,000,000 |
*
From the Revenue Act of 1987.
** For
large taxable transfers, generally those over $10 million, the
graduated rates and unified tax credits are phased
out.
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