Estate Tax Applicable Exclusion Amount An estate tax return for a U.S. citizen or resident needs to be filed only if the gross estate exceeds the applicable exclusion amount, listed below. Applicable Exclusion Amounts | Year | Exclusion Amount | 2003 | $1,000,000 | 2004 and 2005 | $1,500,000 | 2006, 2007, and 2008 | $2,000,000 | 2009 | $3,500,000 |
Reduction of Maximum Estate and Gift Tax Rate For estates of decedents dying, and gifts made, after 2002, the maximum rate for the estate tax and the gift tax is as follows. Maximum Estate and Gift Tax Rates | Year | Maximum Tax Rate | 2003 | 49% | 2004 | 48% | 2005 | 47% | 2006 | 46% | 2007, 2008, and 2009 | 45% |
2006 Federal Tax Rates for Estates and Trusts The 2006 federal estate and trust tax rates are as follows. 2006 Federal Estate and Trust Tax Rates | If taxable income is: | The tax is: | Not over $2,050 | 15% of the taxable income | Over $2,050 but not over $4,850 | $307.50 plus 25% of the excess over $2,050 | Over $4,850 but not over $7,400 | $1,007.50 plus 28% of the excess over $4,850 | Over $7,400 but not over $10,050 | $1,721.50 plus 33% of the excess over $7,400 | Over $10,050 | $2,596.00 plus 35% of the excess over $10,050 |
Annual Exclusion for GiftsFor calendar year 2006, the first $12,000 of gifts to any person (otherthan gifts of future interests in property) are not included in the total amount of taxable gifts made during that year. For calendar year 2006, the first $120,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts made during that year. Experienced Lawyers Working For YouBarnett Law Firm
1905 Wyoming Boulevard NE
Albuquerque, NM 87112
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Fax: (505) 275-3837 An Albuquerque general civil practice law firm serving Bernalillo County, Sandoval County, Torrance County, and Valencia County, including the towns of Albuquerque, Rio Rancho, Los Lunas, Torrance, Edgewood, Moriarty, Kirtland Air Force Base, and Sandia National Laboratories
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