What is a transfer tax?

The

transfer tax is focused on rich individuals and families and generates less than 2% ($ 30 billion) annual federal government ($ 2 trillion). It consists of a tax tax, real estate tax and a tax transfer tax ("GSTT"). Opponents of the transfer tax to these taxes cumulatively call "death taxes". GSTT is a tax or real estate tax and is collected (in a harsh auditorium) about transfers carried out during life or after deaths removed more than one generation from the transferor, such as grandmother to grandson. Usually, tax liabilities are paid by transfer or transfer of the transferor. Payment of the transfer tax by transfer, if the obligation is due from the beneficiary, is also a tax gift.

Since December 2002, tax rates for gifts and real estate taxes begin to 18% and rise to 50% for gifts or taxable assets over $ 2.5 million at the rate of united tax transfer. GSTT is an apartment 50%. Each individual is awarded united credit ($ 345,800 in December 2002),whose effect exempts estates below $ 1 million. Each individual is also awarded an annual amount of exclusion, an effect that exempts the overall gifts to each individual during the year to the annual exclusion amount ($ 11,000 in December 2002). If the transferor decides to pay the donation tax on the value of gifts in total than the annual amount of exclusion, the part of his united loan is considered to be the individual. Liberation ($ 1.1 million in Detembeer 2002) for transfers subject to GSTT is also awarded to every individual during his life. An unlimited marriage collision allows (non -defense) spouses to transfer any amount of Wealth without the consequences of the transfer tax.

Bush administration and Congress approved the Act on Economic Growth and Tax Approval of 2001, which reduced federal taxes across the deck. The law increased the amounts of the unified loan and the exemption from GSTT and until 2007 it provided a gradual reduction in the rate of tax from transfer to 45%. In 2010, donation tax will be reduced to 35% andReal estate and GSTT tax will be removed. In 2011, the provisions of sunset will cancel all changes made in the tax transfer Act and returns to the tax transfer rules in 2001. Sudden exclusion and sudden reversal of transfer led to some jokes (considered disgusting) regarding potential heirs dealing with their volunteers until 2010. Accelers to search for to search to search for a tax credit. exemption and reduced rates and/or seek to ensure a permanent reduction in the transfer tax. Tsni and/or removal of taxes from a transfer at this time is particularly important in that the largest transfer of wealth ever appears from one generation to another in the US will occur in the next few decades.