Have Tax Questions? Ask a Tax Expert for Answers ASAP
Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
For purposes of New York State estate tax, the gross estate includes all property that a person owned, had control over, or had an interest in on the date of his or her death
The only date that matters for estate tax is the date of death and where the person made his primary residence on that date.
This means that if he died in Florida but had more than $1MM in property value in NY state, then NY may tax the estate portion that is in NY state.
Establishing residency in Florida is a matter of state law. It has nothing to do with the value of one home in FL vs NY. It has to do with moving your auto registrations, driver's license, voting records, etc.
got it , i understand that if the new york property is put into a Florida llc then is too would avoid the new york estate tax ? am i correct , and thank you by the way
Again, per NY law, if you live in NY for MORE than half the year (182+ days), then NY can consider you a legal resident. FL does not have such a law.
No. having real property owned by a FL LLC does not change the situs of the property. It is STILL NY property unless you can get the state to recognize that lot as part of Florida! Hah!
understood , ha .. just 2 more questions please ..
1) is the nys estate tax a flat %16 2) i am confused as too which part of the estate tax is deductible from which part ... is it the federal estate tax that lowers the estate tax basis i for the state ? or vica versa ? ho does that work ?
state taxes can be deducted from the federal calculation.
is the state estate tax 16% flat or is a progressive tax
It doesn't even start that low. It is a progressive tax that starts at 18% and goes to 55%
Anything over $3MM is taxed at 55% flat.
WIth estate and federal tax, on amounts over $5MM, you're lucky to take away 25% of the estate,
wow , thats criminal ... thank you , i think i need an estate planner
AN estate planner that charges a few to tens of thousands can save you millions!
thank you so much for the advice