The date of death for a widow was 2019. If the estate was valued at $2,103,000...
The date of death for a widow was 2019. If the estate was valued at $2,103,000 and the estate was taxed at 40 percent, what was the heir’s tax liability? Use Exhibit 19-6 for Estate Exemption.
Homework Answers
Estate Tax is attracted when a Person dies and his or her estate is transferred to his or her Heir. When the amount exceeds the exemption limit then this tax is attracted and amount over and above the exemption amount is taxed.
Prior to 2019, i.e. in the year 2018 the tax exemption amount was 5,490,000 but in the year Tax rate was increased to 11.4 million .
In this question, the estate is valued at 2,103,000 and the person has died in the Year 2019. The amount is well under the exemption limit of 11.4 million.
THEREFORE, there will be no Tax Liability for the heir and the estate can be transferred without any tax.
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