Question

I just paid $29 membership and I cant asked a question, why?Question 5. The date death for a widow was 2017. If the estate was valued at $7.5 million and the estate was taxed at 40 percent, what was the heir's tax liability?

Answer 1

We need to use the formula for the taxable estate:

taxable estate= Estate value - exemption

Where the estate value is $7.5 million

and the exemption per state tax rule of 2017 is given by $5.490 million.

Then:

Taxable estate=$7.5 million - 5.5.490 million.

Taxable estate= 2.0.10.000

Finally, to find heir's tax liability, we need to multiply the taxable estate by the taxed percent.

Then:

heir's tax liability = 2.010.000*40%

heir's tax liability = 2.010.000*0.4

heir's tax liability = 804.000

Hence, the result is $ 804.000.