2002 federal income tax tables
This is because the annual indexing is rounded down to the nearest $1,000 in the case of gifts, and to the nearest $10,000 for the other limits. 2002 federal income tax tables Tax refund estimator. NEW ESTATE TAX EXCLUSION FOR FAMILY-OWNED BUSINESSThe Act created a new Code section ( 2033A) applicable to decedents dying after 1997 which provides a special estate tax exclusion for "qualified family-owned business interests. " The excluded amount is limited to $1. 3 million reduced by the applicable exclusion amount (noted above). 2002 federal income tax tables Federal income tax calculator. Thus, for an individual dying in 1998, the maximum amount excluded under 2033A is $675,000 ($1. 3 million less the $625,000 exclusion amount for 1998). By 2006, the maximum 2033A exclusion will only be $300,000 because the applicable exclusion amount will then be $1 million. 2002 federal income tax tables Harris county tax. Unfortunately, the provision is exceptionally complicated and difficult to satisfy due to extensive eligibility rules. The family business exclusion applies only to estate transfers, not to taxable gifts. Some of the eligibility requirements are: The family business must comprise 50% of the decedent''s estate The business must be 50% owned by one family, or 70% by two families, or 90% by three families, as long as the decedent''s family owns at least 30% of the business The value of the business eligible for the exclusion is reduced to the extent that the business owns passive assets The decedent must have been a U. S. citizen The property must pass to qualified heirs who will materially participate in the business The qualified heirs must be U. S. citizens, or it they are not, their interests must be held in a trust similar to a Qualified Domestic Trust under IRC 2056AThere are also recapture provisions if the heirs dispose of the business or cease their material participation within ten years after the decedent''s death. CommentAs noted above, the qualified family-owned business exclusion becomes less valuable over time due to the annual increases in the applicable exclusion amount. This loss in the value of the qualified family-owned business exclusion is further exacerbated by the estate tax rate structure. This is because the applicable exclusion amount saves estate taxes at the lowest marginal rate while the new family business exclusion saves taxes at the highest rate. For example, in 1998 the tax on a $5 million estate that includes sufficient family business interests to secure a maximum exclusion would be $1,817,500. In 2006, assuming no change in the value of the assets, the estate tax would be $1,880,000, an increase in estate tax of $62,500. Still, the new family business exclusion is available in addition to the special use valuation reduction and the estate tax deferral privileges (discussed below), each of which has just gotten more valuable.
2002 federal income tax tables
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