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Estate Planning Information for 2018


The Taxable Estate
Federal Estate Tax
From To Base Rate Plus Tax on the Excess of
$ 0 $ 10,000 18% $ 0
10,000 20,000 $ 1,800 + 20% 10,000
20,000 40,000 3,800 + 22% 20,000
40,000 60,000 8,200 + 24% 40,000
60,000 80,000 13,000 + 26% 60,000
80,000 100,000 18,200 + 28% 80,000
100,000 150,000 23,800 + 30% 100,000
150,000 250,000 38,800 + 32% 150,000
250,000 500,000 70,800 + 34% 250,000
500,000 750,000 155,800 + 37% 500,000
750,000 1,000,000 248,300 + 39% 750,000
1,000,000 1,250,000 345,800 + 41% 1,000,000
1,250,000 1,500,000 448,300 + 43% 1,250,000
1,500,000 2,000,000 555,800 + 45% 1,500,000
2,000,000 2,500,000 780,800 + 49% 2,000,000
2,500,000 3,000,000 1,025,800 + 53% 2,500,000
3,000,000 10,000,000 1,290,800 + 55% 3,000,000
10,000,000 17,184,000 5,140,800 + 60% 10,000,000
17,184,000 On up 9,451,200 + 55% 17,184,000


 
For Decedents  
Dying In
Maximum Estate  
Tax Rate
Applicable
Exclusion Amount
Exemption
Equivalent
2001
55%
$220,550
$675,000
2002
50%
345,800
1,000,000
2003
49%
345,800
1,000,000
2004
48%
555,800
1,500,000
2005
47%
555,800
1,500,000
2006
46%
780,800
2,000,000
2007
45%
780,800
2,000,000
2008
45%
780,800
2,000,000
2009
45%
1,455,800
3,500,000
2010
"Extended Thru 2018"
N/A
N/A
2011
55% Reintroduced 2014
345,800
1,000,000

Taxpayere Relief Act 2012 Explained!
What's Hot News Releases Multimedia Center Tax Relief in Disaster Situations Tax Reform Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips e-News Subscriptions IRS Guidance Media Contacts IRS Statements and Announcements IR-2018-162, Aug. 8, 2018 WASHINGTON The Internal Revenue Service issued proposed regulations today for a new provision allowing many owners of sole proprietorships, partnerships, trusts and S corporations to deduct 20 percent of their qualified business income. The new deduction -- referred to as the Section 199A deduction or the deduction for qualified business income -- was created by the Tax Cuts and Jobs Act. The deduction is available for tax years beginning after Dec. 31, 2017. Eligible taxpayers can claim it for the first time on the 2018 federal income tax return they file next year. The deduction is generally available to eligible taxpayers whose 2018 taxable incomes fall below $315,000 for joint returns and $157,500 for other taxpayers. Its generally equal to the lesser of 20 percent of their qualified business income plus 20 percent of their qualified real estate investment trust dividends and qualified publicly traded partnership income or 20 percent of taxable income minus net capital gains. Deductions for taxpayers above the $157,500/$315,000 taxable income thresholds may be limited. Those limitations are fully described in the proposed regulations. Qualified business income includes domestic income from a trade or business. Employee wages, capital gain, interest and dividend income are excluded. In addition, Notice 2018-64, also issued today, provides methods for calculating Form W-2 wages for purposes of the limitations on this deduction. More information in the form of FAQs on Section 199A can be found on IRS.gov. Taxpayers may rely on the rules in these proposed regulations until final regulations are published in the Federal Register. Written or electronic comments and requests for a public hearing on this proposed regulation must be received within 45 days of publication in the Federal Register.

The American Taxpayer Relief Act of 2012 Pub.L. 112240, H.R. 8, 126 Stat. 2313, enacted January 2, 2013) was passed by the United States Congress on January 1, 2013, and was signed into law by President Barack Obama the next day. The Act centers on a partial resolution to the United States fiscal cliff by addressing the expiration of certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (known together as the "Bush tax cuts"), which had been temporarily extended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Act also addressed the activation of the budget sequestration provisions of the Budget Control Act of 2011.

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