Smithee was right, federal estate taxes begin on estates valued at $1,500,000
also, did you know this tax law will be repealed in 2010?
It's very important to be aware that this repeal is temporary; the entire law "sunsets" (expires) after December 31, 2010. This means that the provisions of this 2001 Tax Act will no longer be effective on January 1, 2011 and the tax structure as it existed in 2001 will take effect again (in 2011, Federal estate tax will be assessed on property in excess of $1 million at the top rate of 55%.)
Federal 2004 Gift and Net Estate Tax Rates
If taxable estate is... the base tax is... plus minus unified credit
$1,500,000 - 1,999,999 - $555,800 45% of excess over $1,500,000 $555,800
$2,000,000 and over - $780,800 48% of excess over $2,000,000 $555,800
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