Recent Examples of estate tax from the Web
One would allow young farmers to pay the estate tax on the agricultural value of the land rather than the development value, allowing them to inherit farms without having to sell some of the land.
Fewer than 2,000 families per year could be subject to the new estate tax limits, but billions of dollars are at stake.
Doubling of the gift and estate tax exemptions, to $10 million (expected to be $11.2 million for 2018 with inflation indexing).
This is a huge policy shift from when the estate tax laws were first implemented back in 1916.
Alexis Leondis, Bloomberg News Tax leader, will discuss why the GOP’s plan to kill the estate tax sets up charitable giving conflict.
It can be used for estate taxes, taxes due on inherited IRA distributions or taxes due on death-bed Roth conversions of qualified accounts, or for charitable planning.
The cash alternative, on the other hand, carries a federal tax liability closer to $500,000, no real-estate tax, and none of the maintenance, utilities, or relocation or travel costs associated with owning a second home.
Just 11 years after his death, Milton Friedman is leading an expanding campaign to persuade lawmakers to abolish the federal estate tax.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'estate tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of ESTATE TAX
What It Is
An estate tax is levied on assets inherited by the heirs to a deceased person's estate.
How It Works
The estate tax is applied differently according to U.S. Federal and state laws as well as international law. Typically, estate taxes are only levied once a certain threshold, known as the exclusion limit, has been reached.
Estate taxes are not applicable if a person bequeaths (transfers) the assets from the estate to a living spouse. This type of transfer is known as the unlimited marital deduction. However, in the event that the spouse dies, the beneficiaries may be required to pay estate taxes if the exclusion limit is exceeded.
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Why It Matters
Estate taxes, like other taxes on unearned incomes, are a source of revenue for governments that use it to finance various projects. The issue of the estate tax has become highly politicized, and it is sometimes referred to as the "death tax" by people who oppose it.
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ESTATE TAX Defined for English Language Learners
Definition of estate tax for English Language Learners
: a tax that you pay on the money and other property that comes to you because someone has died : a tax on an estate that you inherit
legal Definition of estate tax
Seen and Heard
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