The Era of Income Tax Basis
The Era of Income Tax Basis
Date
2012-06-08
Authors
Harl, Neil
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Altmetrics
Authors
Research Projects
Organizational Units
Iowa State University Digital Repository
Organizational Unit
Journal Issue
Journal Issue
Series
Department
Iowa State University Digital Repository
Abstract
Over the past several decades, estate planning has been dominated by the era of federal estate tax.1 The federal estate tax exemption of $60,000 before 1977 for an estate with a tax rate ranging from three percent for taxable estates of $5,000 or less to a tax rate of 77 percent for estates over $10,000,000 has given way to an applicable exclusion amount of $5,120,000 for deaths in 2012 and a tax rate of 35 percent.2 That has meant a sharp drop in the percentage of farm and ranch decedents (and of all decedents) filing a federal estate tax return and paying federal estate tax.3