I already paid the inheratence tax on my moms house...when i file for 2008 taxes is it deductableand what form would i use?

Answer 1

An estate must file Form 706, U S Estate Tax Return, if the vallue of the gross estate at the date of death was more than $2,000,000. The return is due 9 months after the date of death unless an extension is granted. The first extension period is 6 months. If and estate tax return has to be filed, the following items can be deducted before taxation: funeral expenses any claim against the estate casualty and theft losses any marital deduction (gift given to spouse) charitable deductions There are also certain credits that are allowed to be taken: 1. Unified Credit - in 2006-2008 the applicable exclusion amount is $780,800 2. Credit for tax on prior transfers 3. Credit for foreign death taxes A beneficiary of an estate, that must distribute all its income currently, must report his/her share of the distributable net income whether or not it was actually received. any olther amount paid, credited, or required to be distributed to the beneficiary, must also be included in the beneficiary's gross income. Each beneficiary who receives a distribution from the estate for the tax year or to whom any item is allocated must receive a Schedule K-1. A bequest is the act of giving or leaving property to another through the Last Will and Testament. It will not be an allowable deduction to the estate or taxable to the beneficiary if the bequest is required by the terms of the will; a gift or bequest of specific sum of money or property, and paid out in three or fewer installments under the terms of the will. http://taxresolutionaries.blogspot.com