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    rlosito's Avatar
    rlosito Posts: 2, Reputation: 2
    New Member
    		  
    #1

    Aug 20, 2007, 10:41 PM
    Inheritance tax
    I would like to know what the federal tax rate is on an inheritance of $24,500,000.00
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Aug 21, 2007, 07:28 AM
    Some rough numbers: an estate worth $24.5M will have a federal estate tax due of about $10.125M. This is 45% of $22.5M (the first $2M of the estate is not taxed, assuming the deceased passes away in 2007 - 2009). It also assumes no credit for estate taxes paid to the state, and that no additional gift taxes or generation skipping taxes are owed.

    By the way, under current law if the person dies in 2010, the estate tax will be $0. But if he hangs on until 2011, the tax rates jump back to what they were several years ago ($1M exclusion and 55% tax rate), so the estate tax would be $12.925M. Great system, ain't it?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Aug 21, 2007, 07:30 AM
    Hmm, if I were going to inherit $24M, I would be able to afford a CPA firm to figure this out for me.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Aug 21, 2007, 01:16 PM
    Agree with ScotttGem.

    For an estate of that size, the owner of that estate should be utilizing a professional estate planner to see about transferring the assets to his heirs with as little tax paid as possible.
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