Estate Taxes

Federal land tax applies to the transfer of ownership of the death. The estate of a deceased person liable for the taxes on the property. The taxpayer should use Form 706 U.S. Estate Tax Return, to file estate tax returns. For deceased dying in 2006, Form 706 must be the executor of the estate of every U.S. citizen or resident whose gross estate, plus adjusted taxable gifts are made and specific exemption, is more than $ 2,000,000.

The executor of the estate must fileReturns for the deceased. This return is for nine (9) months after the date of death. (IRS any payments due for the period up to 10 years may be extended) using Form 4768, for an automatic 6-month extension of the deadline to apply to a file.

Life insurance proceeds are only on the estate if the proceeds are given to the property received in any way.

The gross estate includes the value of all assets of the deceased at the time of his death.

The value of the property is based on market value at the time of death.

The taxable estate is the gross estate, less the following:

* Administrative and funeral expenses

* Claims against the estate

* All outstanding obligations

* Casualty and theft losses

* Marital Deductions

* Charitable deductions

It is strongly recommended that you use a tax on the estate tax completely professional, rent especially if you do not have access to the deceased's youngest> Tax. All assets will be listed on the estate tax return. If you are not sure of the value of property, IRS can your tax professional with assets that have been reported.

All the executors are responsible for the return as filed and are liable for penalties for erroneous or false returns made available.

For more information, visit the IRS website at irs. Gov. and place it in the keyword: property taxes