|
#3
06-01-2005, 10:04 AM
| |||
| |||
 Re: Do Loans reduce the Estate value for estate tax purpose? b3hks001[at]sneakemail.com wrote: - quote - > I know the estate value the properties at market value. But
Well you received three apparently different answers.> if a property has been collatorized for a loan (e.g. > mortgage), is that property valued at the equity value > (market value less loan amt.) > How about non-collatorized loans (e.g. credit cards)? Are > they deducted from the total estate value before tax is > calculated? Perhaps the answers are more similar than they appear because your question was vaguely worded (which is understandable). See IRC 2031 and Reg. 20.2031-1 for the general valuation rules for the *gross* estate. See IRC 2053(a)(4) regarding mortgages. 2053(a)(4) makes it clear the gross estate is not reduced by the debts but the taxable estate is reduced by the debts. The concept is similar to "gross income" on your 1040 versus "taxable income." While related the two are not usually the same number. Unsecured loans are allowed as a deduction by 2053(a)(3). << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#2
05-27-2005, 05:09 AM
| |||
| |||
| Re: Do Loans reduce the Estate value for estate tax purpose? No and No << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#1
05-27-2005, 04:50 AM
| |||
| |||
| Re: Do Loans reduce the Estate value for estate tax purpose? 0b3hks001[at]sneakemail.com wrote: - quote - > I know the estate value the properties at market value. But
Yes, liabilities are a valid deduction from gross estate to> if a property has been collatorized for a loan (e.g. > mortgage), is that property valued at the equity value > (market value less loan amt.) > How about non-collatorized loans (e.g. credit cards)? Are > they deducted from the total estate value before tax is > calculated? arrive at taxable estate. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
05-27-2005, 04:50 AM
| |||
| |||
| Re: Do Loans reduce the Estate value for estate tax purpose? b3hks001[at]sneakemail.com wrote: - quote - > I know the estate value the properties at market value. But
The value is not directly reduced by the loan. The mortgage> if a property has been collatorized for a loan (e.g. > mortgage), is that property valued at the equity value > (market value less loan amt.) > How about non-collatorized loans (e.g. credit cards)? Are > they deducted from the total estate value before tax is > calculated? is a deduction from the estate, the same as unsecured loans. When determining the gross value of the estate for filing requirement purposes the deductions are ignored. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#-1
05-24-2005, 01:55 PM
| |||
| |||
| Do Loans reduce the Estate value for estate tax purpose? I know the estate value the properties at market value. But if a property has been collatorized for a loan (e.g. mortgage), is that property valued at the equity value (market value less loan amt.) How about non-collatorized loans (e.g. credit cards)? Are they deducted from the total estate value before tax is calculated? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| estate, loans, purpose, reduce, tax |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Estate tax Harlan Lunsford: Late breaking bulletin! Today the House (of representatives, iow OUR congresscritters) voted to eliminate the estate tax. Interesting.... to... | Taxes | 4 | 04-18-2005 03:15 PM | |
| Can I use loans made to wife before marriage to reduce capital gains? beachboy_1013@yahoo.com: Starting in 1992, my girlfriend had a series of heart attacks. She had no insurance, and was unable to work, and over the following seven years I... | Taxes | 2 | 02-04-2005 04:31 AM | |
| Question about using loans made to wife before marriage to reduce capital gains after marriage. bored_one: Starting in 1992, my girlfriend had a series of heart attacks. She had no insurance, and was unable to work, and over the following seven years I... | Taxes | 4 | 02-04-2005 03:14 AM | |
| Estate Tax Deduction vahania63@yahoo.com: I inherited part of an IRA last year (2003), and paid taxes on the distribution I took. The estate, of which the IRA was a part, paid about... | Taxes | 1 | 01-04-2005 07:21 AM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
