tax tips for tax year 2008
Estate and Gift Tax
Property owned at the time of death may be subject to federal estate tax, and property given during one’s lifetime may be subject to federal gift tax. These taxes, if assessed, are in addition to individual income tax.
For 2008, gross estates of not more than $2,000,000 and gifts of $12,000 are not taxable. For 2009, gross estates of not more than $3,500,000 and gifts of $13,000 are not taxable. Estates and gifts exceeding these thresholds may be subject to estate and/or gift tax depending on the status of the decedent or donor (e.g., U.S. citizen vs. foreign national), location of the property, and what U.S. law and any estate and gift tax treaties between the U.S. and foreign countries provide.
For further information, please refer to Publication 950, Form 706, 706-NA (Estate Tax) or Form 709 (Gift Tax).