The Department of Finance had estimated a P6.28-billion additional revenue from
estate tax amnesty in its two-year implementation.
Under the draft rules, taxpayers are given two years from the effectivity of the finalized revenue regulation to file the
Estate Tax Amnesty Return (Etar) or BIR Form 2118-EA in triplicate copies at the Revenue District Office (RDO) having the jurisdiction over the last residence of the decedent.
Prior to the enactment of the act, the legacies that many self-made baby boomers created were threatened by the federal
estate tax. This was particularly true in family owned businesses.
Under current law, because we have a federal
estate tax, when someone dies, their basis in most items is "stepped up." This is tax jargon meaning the deceased person's "cost" basis is adjusted to become the fair market value at the date of death.
The federal
estate tax is owed by only about 1 out of 700 estates.
A taxpayer is generally allowed to file an amended gift tax return or a supplemental
estate tax return to claim a marital deduction for a gift or bequest to the taxpayer's same-sex spouse and to restore the applicable exclusion amount allocated to the transfer, as long as the limitation period for filing a claim for credit or refund under Sec.
Before 2005 many states levied a so-called "pick-up tax" on estates, which was essentially a revenue-sharing arrangement with the IRS that allowed states to collect revenues on estates larger than the federal exemption without creating their own
estate tax. After 2005, some states chose not to collect any
estate taxes; others chose to have their own.
Although the New Jersey
estate tax was repealed, there are many who believe that its
estate tax repeal will itself be reversed by the next administration.
If George dies and leaves everything to his wife, Irene, no
estate tax will be due.
"Some of the real
estate tax employees in some governorates have already halted the distribution of notifications".
* The
estate tax exemption, as everyone knows, is currently pegged at $5.25 million.
The impact of the new
estate tax exemption levels can be estimated using information regarding farm assets and liabilities for farm operator households from the Agricultural Resource Management Survey (ARMS).
