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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 36939
Experience:  Texas lawyer for 30 years in Estate law
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When considering whether state estate tax is due in Massachusetts,

Customer Question

When considering whether state estate tax is due in Massachusetts, for property in MA, where the decedent is a non resident of MA, are estate assets outside of MA included in the gross estate threshold?
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.
Hi and welcome to JA. I am Ray and will be the expert helping you today.
Here all the estate assets are counted from everywhere and this is the gross amount used for both federal and state estate tax threshholds to determine if and how much the taxes are here.
The same figure is used for federal and state and if taxes are due then you would pay on that gross amount.
Here is reference.
http://www.nolo.com/legal-encyclopedia/massachusetts-estate-tax.html
You would receive credit if you paid estate taxes in the other state, they can only tax you once.So if you were taxed elsewhere you receive a deduction from MA taxes.
"In the case of a resident of Massachusetts who owned or transferred real estate or tangible personal property located outside of Massachusetts, Massachusetts grants a credit for estate or inheritance taxes properly paid to other states. In these cases, the Massachusetts estate tax is the amount of the federal credit for state death taxes minus the lesser of:
(1) The total of the amount of all estate, inheritance, legacy and succession taxes actually paid to other states for property owned by the decedent or subject to those taxes in connection with the estate; or
(2) The amount equal to the proportion of the allowable credit as the value of the properties taxable by other states bears to the value of the entire federal gross estate wherever situated. This calculation is made as follows:
(Gross value of property taxed by other states ÷ Federal gross estate) × Credit for state death taxes
In the case of a nonresident of Massachusetts who owned or transferred real estate or tangible personal property located in Massachusetts, use the Massachusetts Estate Tax Return (Form M-706) to compute the amount payable to Massachusetts. The amount of the Massachusetts nonresident estate tax is the proportion of the allowable credit from the federal estate tax return that the gross value of the Massachusetts property bears to the entire federal gross estate wherever situated. This calculation is made as follows:
(Gross value of real property and tangible personal property in Massachusetts ÷ Federal gross estate) × Credit for state death taxes."
http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/estate-tax-information/estate-tax-guide.html
Information about non residents again they can tax you on estate located in MA..
For nonresidents of Massachusetts, an estate may be subject to the Massachusetts estate tax if it includes real estate or tangible personal property having a taxable situs within the state of Massachusetts and the value of the gross estate exceeds $1,000,000.
You may want to talk to an MA CPA to see if you can lower taxes here or otherwise reduce your tax burden.MA has a really heavy estate tax and unlike other states it has not been reduced or eliminated.I wish I could give you better news.Unless you paid estate taxes in the other state and get credit you likely owe on out of state real estate too as part of gross estate.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.