The Federal Estate Tax law, passed last year, changes the federal treatment of state estate and/or inheritance taxes. The result is state taxes become more burdensome in most cases.
A new American Family Business Foundation report explains how the federal estate law eliminated the federal credit for state estate and inheritance taxes paid and replaced it with a deduction.
Unfortunately, up until now, understanding how each state operates has been difficult and cumbersome. No central repository of information on state estate and inheritance taxes existed.
Now one does. An AFBF Issue Brief offers a one-stop, comprehensive review of the estate and inheritance tax details from the 22 states plus the District of Columbia that impose these taxes. It breaks out the rates, exemptions and classes of taxpayers required to pay in an easy-to-read, state-by-state outline.
AFBF's Issue Brief provides:
* The maximum possible tax liability for heirs; state plus federal responsibilities
* Which states impose inheritance taxes
* Which states impose estate taxes
* Which states impose both
* How the difference between the two taxes impacts taxpayers
"State legislatures are wising up to the fact that these state inheritance and estate taxes are snuffing out employment and small businesses in their states," says AFBF's Alexander Guin. "Efforts are underway in Ohio, Indiana and Pennsylvania to repeal their state estate taxes once and for all."
To see the report, click HERE.