Federal income tax form
This newsletter will highlight some of the changes which I believe are most important to you. federal income tax form Georgia tax forms. ESTATE TAX EXEMPTION INCREASESThere is an old saying which goes: "There are only two constants in life, DEATH AND TAXES. Uncle Sam tried to change that saying with the Taxpayer Relief Act of 1997. The new estate tax law provides for an increase inthe estate tax exemption amount. federal income tax form Federal tax brackets. By 2006, each US Citizen will be able to transfer $1,000,000 free of gift or estate taxes. The exemption will increase as follows: 1998: $625,0001999: $650,0002000: $675,0002001: $675,0002002: $700,0002003: $700,0002004: $850,0002005: $950,0002006: $1,000,000There is no provision for indexing the exemption. Therefore, when the exemption reaches $1,000,000, unless the law is changed, the exemption will remain at $1,000,000. federal income tax form State property taxes. This is in contrast to the $10,000 annual gift tax exclusion which after 1998, will be indexed annually for inflation. Therefore, the$10,000 will increase with inflation. The new law also indexes the $1,000,000 Generation Skipping Transfer Tax to inflation as well. In addition, if you own a "qualified family owned business" (the requirements include that at least 50% of the decedent''s estate consists of a family owned business) you may exempt from estate tax up to $1,300,000. As the personal exemption rises, the exemption for the business decreases so that at no point may more than $1,300,000 be exempt from Federal Estate Tax. For example, if a person died in 1998 the personal exemption would be $625,000 and qualified family owned business exemption would be $675,000 yielding a total exemption of $1,300,000. If the same individual dies in 2006, the business exemption would be $300,000 because the personal exemption would be $1,000,000, yielding a total exemption of $1,300,000. Therefore, as you can see, you will not receive the full benefit of the personal exemption unless you survive until the year 2006. EXCLUSION FOR GAIN FROM INCOME ON SALE OF RESIDENCEPossibly the change to the capital gains tax for the sale of principal residences will have the greatest immediate income tax impact. The new law eliminates the rollover deferral on the sale of a primary residence as well as the one-time $125,000 exclusion on gain for homeowner age 55 and older. Losses are still non-deductible. Instead, the new law provides for the exclusion from gain from income up to $250,000 per person ($500,000 for taxpayers filing jointly) on the sale of a principal residence.
Federal income tax form
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