Estates and Trusts
Do you find yourself the executor of an estate, or the trustee of a trust and need advise about the tax filing requirements? We are here to help.
Form 706 is the Federal estate tax return which is generally due 9 months after death. In 2015 this form is required for gross estates, plus adjusted taxable gifts and specific exemption which are more than $5,430,000. A Form 706 is also required for an estate when it is below the above mentioned filing threshold but would like to elect portability to a surviving spouse. For more information about this form contact us.
Form 1041 is the Federal fiduciary tax return which is required for both trusts and estates when thier annual income exceeds certain thresholds. This is a seperate filing from the estate Form 706 and much smaller estates often do have to file this form even if they are exempt from the Form 706 filing. For more information about trust and estate taxation contact us.
Maryland Estate Tax Return - MET-1 - We are a Maryland CPA firm with experience in preparing the MET-1 form. Maryland is in the process of re-coupling to the Federal exemption amounts but this will not fully occur until 2019. Between now and then even when an estate is exempt from filing the Federal Form 706 it may still need to file an MET-1. The filing thresholds are listed below:
2015 $1,500,000 gross estate
2016 $2,000,000 gross estate
2017 $3,000,000 gross estate
2018 $4,000,000 gross estate
2019 & after - matches the federal exemption amount
Yes, believe it or not you can be taxed on the gifts you give to others. If you give more than $14,000 to any one person, other than your spouse, in a single year you are required to file Form 709, the federal gift tax return. You may or may not have any tax to pay depending on elections you make. For more information and guidance on the federal gift tax rules and the Form 709 contact us.