I thought there wasn't estate tax if the total gross value was under $1 million in the year a person dies? Why did tax service I went to file a federal 1041 and Maryland 504 Underpayment? I thought a federal 706 was to be filed? Total gross estate was $225,000. Person died in 2009; insolvent, estate valued under $30,000. New asset found and added in 2012. Asset was an unsurrendered annuity beneficiary payout made payable to the estate. This was not personal income made while living.
1 Answer from Attorneys
There are 6-7 different taxes that can come into play when someone dies. Yes, Maryland death taxes kick in only after $1M. However, there is also state inheritance tax (based on the relationship of the person receiving), federal death tax (if over the federal threshold), income tax (based on decedent's income), probate tax, estate income tax (based on estate income), capital gains tax... Some or all or none of these may come into play in any given estate.
For a specific tax question on a particular estate it would be advisable to consult with an experienced accountant.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
