Saturday, May 09, 2020

The $60,000 Estate Tax Exemption Lives On

You thought the punitive $60,000 federal estate tax exemption vanished back in the 1970s? Not entirely. It lives on for foreigners who move assets to the perceived safety of the U.S. but are not domiciled here.

Unless, of course, they hire an ingenious U.S. tax lawyer.


Jim Gust said...

Contrary to what the article states, I don't believe that the 40% estate tax rate kicks in on the first dollar over $60k. Doesn't the foreign person get to run up the estate tax brackets? I thought that was why Congress never converted the tax to a flat 40%.

JLM said...

Judging from the instructions for Form 706-NA, you’re right.