What is the inheritance tax in the United States? What is the definition of inheritance?

Since ancient times, there has been a saying and tradition that children inherit their father's career after his father's death. In China, it is generally inherited by the spouse first, and then by the lineal blood relatives. Property inheritance is a very important property. These high-value things are not free in the United States, but need to pay a certain fee. So, what is the inheritance tax in the United States? How to calculate and what is the definition of inheritance? Now Bian Xiao will introduce you one by one.

What is the inheritance tax in the United States?

The threshold of inheritance tax in the United States is relatively high and fluctuates according to the price index. The threshold of 1999 is $650,000, and the tax rate is excessively progressive, with the highest tax rate reaching 55%.

19 16 years, the United States began to formally levy the federal inheritance tax, and later levied the related gift tax and intergenerational inheritance transfer tax, and from 1977 onwards, the inheritance tax and gift tax used a unified tax rate.

When an American citizen or permanent resident (commonly known as a green card holder) dies, his heirs (except his spouse) are obliged to declare the total amount of the estate and pay the inheritance tax, no matter where his estate is located on the earth. The inheritance of non-citizens or non-permanent residents in the United States is determined by whether the parties concerned have officially lived in the United States (where they are registered) and whether they must pay inheritance tax and gift tax in the United States after their death. The definition of official residence here is not the standard of whether the immigration bureau has the right of abode, nor is it different from the concept of residents in the income tax law. Residents in the income tax law take the residence time in the United States (more than 3 1 day) as the standard, which is straightforward. The official residence in the inheritance tax is actually vague.

Distribution before taxation is the most striking feature of American inheritance tax system. According to the law, the estate administrator or executor must pay taxes in cash within 9 months after the death of the original property owner before distributing the estate. If you can't get the money temporarily, the time for applying for deferred payment shall not exceed 6 months. If someone left a taxable legacy of more than 2 million in 2000, according to the inheritance tax rate of 49% of the $2 million to $2.5 million at that time, his heirs had to pay nearly one million inheritance tax to get this property. The greater the total taxable estate, the higher the tax rate, and the more taxes the heirs need to pay first.

What is the definition of inheritance?

The definition of heritage includes movable and immovable property, tangible and intangible personal property. For example, money is a tangible asset, while property rights in company shares, bonds, insurance policies, pensions and intellectual property rights are intangible assets. The value of intangible assets is generally determined according to the fair market price at that time. For example, the value of real estate and stocks is determined according to the market price at that time. The federal inheritance tax adopts an excessive progressive system, and the tax rate is divided into 18 grades, ranging from 18% to 50%, which is directly related to the total value of the estate. The more inheritance, the higher the tax rate.