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Estate Tax Calculator 2000 to 2001
Note, this calculator uses the tax law in
place prior to the 2001 Tax Act. The Estate tax under the 2001 tax act is
scheduled to be eliminated in 2011 but after 2011 will return to 2000 tax law
meaning estates over $675,000 will be subject to estate tax.
(1) Definitions
Resident: (a)
U.S. citizens and, (b) foreign nationals who meet the definition of
resident. A resident is an individual who enters the U.S.
with the intent to stay for indefinite period of time. Residence for
U.S. gift and estate tax purposes is linked to one's domicile. The
U.S. has negotiated gift and estate tax treaties with several
countries. Such treaties may impact one's status as a resident.
Nonresident:
A foreign national who is not
defined as a resident.
Taxable Estate
Resident: residents are taxed on their
"gross estate" or assets held worldwide, defined as "the value at the time
of death of all property, real or personal, tangible or intangible, wherever situated (IRC
Section 2031).
Nonresident: nonresidents are taxed on
assets which are defined as property "situated in the United States" at the time
of death (IRC Section 2103).
Special rules may apply for up to 10 years after a U.S. citizen or
resident expatriates. (see IRC Sections 877, 2107 and 2501
Taxable Estate: Generally defined as
the gross estate less deductions, as provided by the Internal Revenue Code (IRC Section 2051)
(2) Tax credits are available, as follows:
Exemption
for Residents: Exemption and Tax Credit
. . . . . . . . . . . . . . . . . . . . . .
Exemption . . . .Tax
Credit
2000 and 2001 . . . . . . . . . . . $ 675,000 . . . . . $
220,550
2002 and 2003 . . . . . . . . . . . $ 700,000 . . . . . $ 229,800
2004 . . . . . . . . . . . . . . . . . . $ 850,000 . . . . . $
287,300
2005 . . . . . . . . . . . . . . . . . . $ 950,000 . . . . . $
326,300
2006 or thereafter . . . . . . . $ 1,000,000 . . . . . $ 345,800
Nonresidents: Exemption of $60,000 -- Tax Credit of
$13,000 (IRC Section 2102(c))
(3) The estate tax rate schedule
reflects an additional 5% to phase out both the benefit of the rates below 55%,
and the exemption credits. The different phase-outs for residents and nonresidents with
taxable estates over $10 million reflect the different tax credits shown in (2).
(4)
In addition to the basic gift and estate tax rates noted
above, a generation-skipping transfer tax may also apply (IRC Section
2601). Taxpayers are entitled to a lifetime exemption of $1 million (IRC
Section 2631), indexed for inflation ($1,010,000 for 1999).
All code section references are from the Internal Revenue
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Unified Transfer
Tax Rate Schedule for Residents & Nonresidents(1) |
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A |
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B |
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C |
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D |
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Taxable Amount Over |
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Taxable Amount Not Over |
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Tax (before
credits) on Amount in Col. A(2) |
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Tax Rate on Amount between
Col. A & B |
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-
10,000
20,000
40,000
60,000
80,000
100,00
150,000
250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
2,000,000
2,500,000
3,000,000 |
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10,000
20,000
40,000
60,000
80,000
100,00
150,000
250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
2,000,000
2,500,000
3,000,000
10,000,000 |
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-
1,800
3,800
8,200
13,000
18,200
23,800
38,800
70,800
155,800
248,300
345,800
448,300
555,800
780,800
1,025,800
1,290,800 |
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18
20
22
24
26
28
30
32
34
37
39
41
43
45
49
53
55 |
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Resident |
10,000,000
21,410,000 |
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21,410,000
--- |
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5,140,800
11,986,800 |
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60
55 |
(3)
(4) |
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Nonresident |
10,000,000
17,444,000 |
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17,444,000
--- |
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5,140,800
9,607,200 |
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60
55 |
(3)
(4)
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