Pub. 553, Highlights of 2004 Tax Changes |
2004 Tax Year |
Chapter 5 - Estate and Gift Taxes
This is archived information that pertains only to the 2004 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
Estate Tax Applicable Exclusion Amount Increased
An estate tax return for a U.S. citizen or resident needs to be filed only if the gross estate exceeds the applicable exclusion
amount for the year
of death, listed below.
Annual Exclusion for Gifts Increased
The annual exclusion for gifts made to spouses who are not U.S. citizens increased to $114,000.
Maximum Estate and Gift Tax Rate Reduced
For estates of decedents dying, and gifts made, after 2003, the maximum rate for the estate tax and the gift tax is as follows.
Credit for State Death Taxes Reduced
For estate of decedents dying in 2004, the credit allowed for state death taxes is limited to 25% of the amount that would
otherwise be allowed.
Generation-Skipping Transfer (GST) Exemption Increased
The generation-skipping transfer (GST) lifetime exemption increased to $1,500,000. The annual increase can only be allocated
to transfers made
during or after the year of the increase.
Qualified Family-Owned Business Interest Deduction Repealed
The qualified family-owned business interest deduction has been repealed for the estates of decedents dying after December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.
Changes to State Death Taxes
For estates of decedents dying after 2004, the credit for state death taxes will be replaced with a deduction for state death
taxes.
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