Estate And Gift Taxes

November 30, 2009 by Mitchell A. Port

Since there are no California estate taxes due when a person dies, this post is about federal estate and gift taxes. Estate and gift tax law may be one of the most complex subjects in the Internal Revenue Code. For tax help, I strongly recommend that you consult with an estate tax practitioner (attorney or CPA) who has a lot of experience in these areas of law. You may also find additional information in Publication 950 or some of the other forms and publications offered on the IRS Forms Page as well as on the Forms Page dedicated to estate and gift taxes.

Below are some of the more common questions and answers about Estate Tax issues:

When can I expect the Estate Tax Closing Letter?
What is included in the Estate?
I own a 1/2 interest in a farm (or building or business) with my brother (sister, friend, other). What is included?
What is excluded from the Estate?
What deductions are available to reduce the Estate Tax?
What other information do I need to include with the return?
What is "Fair Market Value?"
What about the value of my family business/farm?
What if I do not have everything ready for filing by the due date?
Who should I hire to represent me and prepare and file the return?
Do I have to talk to the IRS during an examination?
What if I disagree with the examination proposals?
What happens if I sell property that I have inherited?

Below are some of the more common questions and answers about Gift Tax issues:

Who pays the gift tax?
What is considered a gift?
What can be excluded from gifts?
May I deduct gifts on my income tax return?
How many annual exclusions are available?
What if my spouse and I want to give away property that we own together?
What other information do I need to include with the return?
What is "Fair Market Value?"
Who should I hire to represent me and prepare and file the return?
Do I have to talk to the IRS during an examination?
What if I disagree with the examination proposals?
What if I sell property that has been given to me?

Finally, you may need to know about filing estate and gift tax returns which you can read about by clicking here.