Home Business Tax Savings

Home Business Tax Savings About Home Business Tax Savings Tax Reduction Products Home Based Business Contact Home Business Tax Savings  
Home Based Business
Tax Reduction

If you are self-employed and live in the United States or Canada, you can probably reduce your taxes with a small business run with an honest expectation of profit and where your expenses are ordinary, necessary, and reasonable for that business. It's that simple.
Tax Links Tax Savings

What Is An Inheritance Tax And When Is It Applied?
by Gray Rollins

When an individual passes, on the federal government imposes an estate tax. This estate tax only applies to estate properties that are over one million fifty thousand dollars. The federal government is still likely to tax an estate even if all or a portion of the estate is being handed down to other family members. Instead of imposing an estate tax in this situation, there many states that impose an inheritance tax.

An inheritance tax is also commonly referred to as a death tax because it is a tax that is imposed on all estate money and property after an estate owner passes away and leaves their estate or a portion of their estate to another person. States that currently collect a tax on inherited estate money or property are Connecticut, Maryland, Massachusetts, New Jersey, Nebraska, Pennsylvania, Oregon, New York, Indiana, Kansas, Louisiana, Kentucky, and Iowa. Since each state is likely to tax their residents differently, individuals need to research the inheritance tax laws in their state or hire the services of a professional tax attorney. There are also many state governments who regularly update their inheritance tax guidelines, and many states are even considering completely dropping the inheritance tax. This is why it is important for taxpayers or their tax attorneys to keep up-to-date on the latest inheritance tax information.

When the federal government imposes an estate tax the amount of taxes owed generally comes from some of the estate money left behind or the sale of estate property. The state taxing process of money or property that was inherited is a little bit different. States that have an inheritance tax require that the individual who receives the inheritance file and pay any taxes due on the money or property they inherited. This money does not come directly from an estate because it comes from the individual who received the inheritance. http://www.taxhelpdirectory.com/federaltax/

As previously mentioned, different states have different rules, guidelines, and restrictions surrounding an inheritance tax; however, there are several common circumstances that many states all consider. When an individual who has passed on leaves money or property to a close family member, the inheritance tax is likely to be lower than if the property was given to a friend or distant family member. Most states consider a close family member a mother, father, brother, sister, daughter, son, or spouse.

Individuals who are required to report an inheritance and pay a tax on it are required to fill out the necessary state forms. These forms can be obtained by contacting one of the state taxation offices. The phone numbers for these state offices can generally be found by doing an Internet search or by using the contact information from your last state tax return. It is also possible that the inheritance tax forms can be downloaded from the Internet. The majority of states that impose an inheritance tax have a tax website that may have a downloadable copy of the forms that can be printed, completed, and mailed in.

As with estate taxes and traditional state income taxes, there are a number of inheritance tax deductions that can lower the amount of tax money that an individual may owe on their inheritance. To determine these deductions individuals preparing their own inheritance gift tax forms are encouraged to fully read the form instruction booklet to determine what these exemptions are and if they qualify for them.

Gray Rollins is a featured writer for the TaxHelpDirectory.com. To learn more about the inheritance tax, and estate taxes, please visit our site.

More Articles

  • TAXES OWED (The State)
    Delinquent taxes are due now in Richland and Lexington counties. To see a complete list of properties, who owns them and how much they owe, visit www.richland online.com for Richland County properties and www.lex-co.com for Lexington County ones.

  "It's How Much You Keep That Counts! Not How Much You Make."
Tax Reduction Strategies

  • THE ULTIMATE Tax-Reduction System For Small and Home Based Businesses!

  • This easy-to-use System was developed by an MBA and a CPA, and contains SPECIAL ENDORSEMENTS by a Certified Financial Planner and a Registered Investment Advisor, each with more than 20 years experience in their fields.

    Read More
Copyright ® 2006 TaxSaverOnline.com
Home     About Us     Home Business    Tax Savings     Newsletter    Articles