There are many different types of taxes a person has to pay which include Sales Tax, Income tax, Property Tax, Estate Tax, Excise Tax etc. Some of the tax types are known to everyone while others are not common and tax payers find it difficult to comprehend them. Here is the explanation of two different types of taxes:
The items which are considered part of the estate include; Cash, securities, insurance, real estate, and business interests. Estate Tax; is the tax on your right to transfer property at your death. This tax is questioned by many tax payers. Tax payers argue that this tax seems like a penalty for dying. This tax is levied on people whose income exceeds $5.34 million. Estate taxes are levied at federal level and state level. At federal level the highest percentage charged is 40%. At state level the rules of this tax are different. The rate of tax is lower and the exemption amount is also low.
This is almost similar to estate tax, this is the tax levied on the transfer of wealth to someone as a gift, on company shares and cars. The Gift tax is given by one person to another living person. Federal government has a lower exemption for gist tax in comparison to estate tax. Gift taxes are paid by the receipt. All gift of more than $14,000 are taxable. The highest percentage on gift tax is similar to estate tax i.e. 40%.
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