Re: PA Inheritance Tax

[EMAIL PROTECTED] (Helen M. Choate) writes:

> In an effort to do some estate planning, I am trying to
> calculate the PA Inheritance Tax that will be due on my
> estate. So far, the only site I've found is:
> http://www.finance.cch.com/pops/c50s15d170_PA.asp where the
> following is stated:
>
> "As far as estate taxes go, Pennsylvania once required
> estates to file a state return if a federal estate tax
> return (Form 706) had to be filed. Reacting to changes made
> to federal estate tax laws, however, Pennsylvania
> "de-coupled" the calculation of its estate taxes from
> current federal law. Instead, the state estate tax must be
> computed based on the federal tax code as it existed on June
> 1, 2001. The net result is that the state filing threshold
> is $675,000 for estates of decedents dying on or after July,
> 1, 2002."
>
> Since my beneficiaries are not lineal descendants, the tax
> rate will be 15%. But what is that 15% of? The total net
> value of the estate or the amount over $675,000? Or does the
> last sentence simply mean that estates over $675,000 must
> file REV-1500?
>
> I have searched in vain all afternoon to find the relevant
> sections of the federal tax code and Form 706 as they
> existed on June 1, 2001. I have also searched the PA State
> Revenue site and found only Form REV-1500 on which there
> seems to be no allowance for the exclusion amount.
>
> I would appreciate any advice or direction on clarification
> of this issue.

You want to read REV-1501 (Instructions):

http://www.revenue.state.pa.us/revenue/cwp/view.asp?A=190&Q=185860

All real property and all tangible personal property
located within the Commonwealth of Pennsylvania is
taxable, as is all intangible personal property of a
resident decedent regardless of where it is located.
A contract to sell any real property or any tangible personal
property located outside the Commonwealth of
Pennsylvania owned by a resident decedent makes such
property taxable, provided the jurisdiction where the
property is located does not subject it to Inheritance Tax.
Other taxable assets include non-Pennsylvania lottery
winnings, survival action proceeds, certain retirement
benefits, IRAs, annuities, “in trust for” bank accounts,
jointly-owned assets, and living trusts. The designation of
a beneficiary in the event of the death of an owner allows
for the transfer of ownership of some assets without formal
probate. However, these assets are still subject to
Inheritance Tax.

"Jack" - John H. Fisher -  [EMAIL PROTECTED]
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at:   http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=:)

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