Arizona state tax form
Under TRA 97, the 4% rate has been reduced to 2%, and interest on value in excess of $1,000,000 is now at 45% of the underpayment of tax rate. arizona state tax form Irs deductions. The value upon which the 2% interest is due has also been increased to $1,000,000 over the unified credit amount. It should be noted, however, that accompanying the favorable reduction in interest rates and increase of the amount upon which the 2% interest is due are new provisions of the Act making the interest nondeductible for estate and income tax purposes. Exclusion for Qualified Conservation EasementsUnder new Code Section 2031(c), an executor may elect to exclude from the gross estate part of the value of land subject to a qualified conservation easement (in simplest terms, an easement which limits the developability of the property). arizona state tax form Tax rate. The exclusion is limited to the lesser of (A) the "applicable percentage" of the land value, reduced by the amount of any charitable deduction allowed for a contribution of land exclusively for conservation purposes under Code Section 2055(f), or (B) the "exclusion limitation. " The "applicable percentage" is 40% reduced by two percentage points for each percentage point by which the value of the easement is less than 30% of the value of the land. The "exclusion limitation" is a dollar amount increasing in $100,000 increments annually from $100,000 in 1998 to $500,000 in 2002 and thereafter. arizona state tax form 2002-income-tax-brackets. New Limitations on Charitable Remainder TrustsCertain taxpayers found that charitable remainder trusts could be used as a means to avoid payment of capital gains tax on highly appreciated assets, rather than as bona fide deferred charitable giving vehicles. These taxpayers would establish short-term, high- payout trusts to eliminate most of the capital gains tax on sale of the appreciated assets. To remedy this situation, TRA 97 imposes the limitation that a trust will not qualify as a charitable remainder trust if the annual payment from the trust is more than 50% of the initial fair market value of the trust assets, in the case of a charitable remainder trust, and 50% of the annual value of the trust assets, in the case of a charitable remainder unitrust. TRA 97 also imposes a second limitation: that the value of the remainder interest for charity in the charitable remainder trust must be at least 10% of the net fair market value of property as of the date the property is contributed to the trust. This 10% minimum value rule can be very significant, limiting a taxpayer''s ability to establish a trust with successive lifetime interests prior to ultimate payment to the charity. Revaluation of Gifts for Estate Tax PurposesThe estate and gift tax is a unified tax, with a single rate schedule applied to a taxpayer''s cumulative gifts and bequests. The estate tax is computed by determining the tax on the sum of the taxable estate and prior taxable gifts, and then subtracting the unified credit and the tax on taxable gifts. After a gift tax return had been filed and the three-year statute of limitations had expired without challenge by the IRS, a taxpayer often assumed that the value of the gift could not thereafter be altered. However, because of the unification system of gift and estate taxes, courts have allowed redetermination of a gift subsequent to expiration of the statute of limitations in order to permit determination of the appropriate tax rate bracket and unified credit for estate tax purposes. TRA 97 now provides that a gift may not be revalued for estate tax purposes after expiration of the statute of limitations, provided that the value of the gift has been disclosed in a manner adequate to apprise the IRS of the nature of the gift.
Arizona state tax form
Tax || Irs form 4506 || Florida-state-sales-tax || 2002-income-tax-brackets