When estate tax issues arise in the wake of a family member’s death, there are a number of questions that will arise. The party who is inheriting the farm in question is bound to have a wide range of queries. Let’s take a closer look at the questions that are asked most frequently.
Are There Any Deductions That Can Lower These Taxes?
In a word? Yes. If a property is included in the gross estate and passed down to the marital partner of the deceased, it remains eligible for the same deductions. Property that has been left to charity is also eligible. Debt, administrative expenses and any losses that took place during the administrative processes can be included in the deductions.
What Information Must Be Included In The Return?
The return must include a copy of the death certificate, copies of the relevant trust and the will, appraisal copies, any documents that are related to litigation that has taken place with the estate and any documentation that provides further insight into any unusual items that have been included in the return.
How Is Fair Market Value Defined?
The fair market value definition can be challenging for some to comprehend. Simply put, the fair market value represents the price of the property if it were to be sold under normal circumstances. This value is never going to be determined by a sale price that is obtained under any sort of duress.
What About The Farm’s Value?
The decedent’s interests are included and their fair market value will be considered. If the farm has been operated as a family farm, there may be further deductions available. These deductions are adjusted for inflation and a professional service will be more than happy to assist when it comes to their calculation.
If you have any further questions about estate tax and how it will affect your ability to plan a future for your family’s farm, be sure to contact AgriLegacy as soon as possible.
