Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 08-26-2007, 09:53 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
What deductions are available to reduce the Estate Tax?

Here is a list of allowable deductions that would reduce Estate Tax.

1. Marital Deduction:
One of the primary deductions for married decedents is the Marital Deduction. All property that is included in the gross estate and passes to the surviving spouse is eligible for the marital deduction. The property must pass "outright." In some cases, certain life estates also qualify for the marital deduction.

2. Charitable Deduction:
If the decedent leaves property to a qualifying charity, it is deductible from the gross estate.

3. Mortgages and Debt.
All of the decedents mortgage and credit card debt are allowable deductions from the gross estate of the decedent.

4. Administration expenses of the estate.
These expenses typically are 5-10% and court approved and they are considered as an allowable deduction from the gross estate of the decedent.

5. Losses during estate administration
These losses would stem from investments held and a reduction of value is sustained due to losses in the stock market. Other losses may have been incurred in liquidating investments that are included in the Gross Estate

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.