Publication 553 - Highlights Of 2003 Tax Changes - Department Of The Treasury Page 18
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23Maximum Estate and
6.
Gift Tax Rate Reduced
For estates of decedents dying, and gifts made, after 2002,
Excise Taxes
the maximum rate for the estate tax and the gift tax is as
follows.
Maximum
2004 Change
Year
Tax Rate
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49%
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48%
Air Transportation Taxes
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47%
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46%
2007, 2008, and 2009 . . . . . . . . . . . . . . . . . .
45%
For amounts paid in 2004, the tax on the use of interna-
tional air travel facilities will be $13.70 per person for flights
that begin or end in the United States, or $6.90 per person
Credit for State
for domestic segments that begin or end in Alaska or
Death Taxes Reduced
Hawaii (applies only to departures). See Publication 510,
Excise Taxes for 2004, for information on air transportation
For estates of decedents dying in 2003, the credit allowed
taxes.
for state death taxes is limited to 50% of the amount that
would otherwise be allowed. For estates of decedents
dying in 2004, the credit will be limited to 25%.
For estates of decedents dying after 2004, the state
7.
death tax credit will be replaced with a deduction for state
death taxes.
Foreign Issues
Generation-Skipping Transfer
(GST) Exemption Increased
2003 Change
The generation-skipping transfer (GST) lifetime exemption
increased to $1,120,000. The annual increase can only be
allocated to transfers made during or after the year of the
increase.
New Requirement for Form W–7
Form 709–A Obsolete
If you are a resident or nonresident alien applying for an
individual taxpayer identification number (ITIN) to file a tax
Form 709 – A, United States Short Form Gift Return, has
return, you now must attach your original, completed tax
been obsoleted. All gift tax returns must now be filed on
return to Form W –7. For more information, see Form
Form 709, United States Gift (and Generation-Skipping
W–7, Application for IRS Individual Taxpayer Identification
Transfer) Tax Return.
Number.
2004 Change
Qualified Family-Owned Business
Interest Deduction Repealed
The qualified family-owned business interest deduction
has been repealed for the estates of decedents dying after
December 31, 2003.
Page 18
Chapter 7 Foreign Issues
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial