Publication 553 - Highlights Of 2002 Tax Changes Page 26
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
312003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49%
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48%
5.
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47%
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46%
2007, 2008, and 2009 . . . . . . . . . . . . . . . . . .
45%
Estate and Gift Taxes
Repeal of Phaseout
2002 Changes
of Graduated Rates
For estates of decedents dying, and gifts made, after 2001,
the benefit of the graduated rates is no longer phased out
Increased Estate Tax Applicable
for estates and gifts in excess of $10 million.
Exclusion Amount
Reduction of Credit
An estate tax return for a U.S. citizen or resident needs to
for State Death Taxes
be filed only if the gross estate exceeds the applicable
exclusion amount, listed below.
For estates of decedents dying in 2002, the credit allowed
Exclusion
for state death taxes is limited to 75% of the amount that
Year
Amount
would otherwise be allowed. For estates of decedents
dying in 2003 and 2004, the credit will be limited to 50%
2002 and 2003 . . . . . . . . . . . . . . . . . . . . . . .
$1,000,000
and 25% respectively.
2004 and 2005 . . . . . . . . . . . . . . . . . . . . . . .
1,500,000
For estates of decedents dying after 2004, the state
2006, 2007, and 2008 . . . . . . . . . . . . . . . . . .
2,000,000
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,500,000
death tax credit will be replaced with a deduction for state
death taxes.
Increased Gift Tax Applicable
Changes to Installment
Exclusion Amount
Payment Provisions
Beginning with gifts made in 2002, the applicable exclusion
For estates of decedents dying after 2001, several rules
amount for lifetime gifts is fixed at $1 million.
applicable to qualifying for installment payments of estate
tax are changed.
Increased Annual Exclusion for Gifts
•
The allowable number of partners and shareholders
The annual exclusion for gifts of present interests made to
in a closely held business is increased from 15 to 45.
a donee during the calendar year is increased to $11,000.
•
Stock in qualifying lending and finance businesses is
The annual exclusion for gifts made to spouses who
treated as stock in an active trade or business com-
are not U.S. citizens is increased to $110,000 ($112,000
pany.
for 2003).
•
The rules regarding non-readily-tradable stock and
holding company stock are clarified.
Reduction of Maximum Estate
and Gift Tax Rate
Increase in Generation-Skipping
For estates of decedents dying, and gifts made, after 2001,
Transfer (GST) Exemption
the maximum rate for the estate tax and the gift tax is as
follows.
The generation-skipping transfer (GST) lifetime exemption
Maximum
increased to $1,100,000 ($1,120,000 for 2003). The an-
Year
Tax Rate
nual increase can only be allocated to transfers made
during or after the year of the increase.
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50%
Page 26
Chapter 6 Excise Taxes
ADVERTISEMENT
0 votes
Related Articles
Related forms
Publication 1212 - List Of Original Issue Discount Instruments - Department Of Treasury - 2002
Financial
Change Of Address Notifi Cation For Individual Income Tax Form - Office Of State Tax Commissioner - State Of North Dakota
Financial
Related Categories
Parent category: Financial