An inheritance tax is a tax that people pay when money or property acrued to them from the estate of a person who has died. Read below about state’s taxation & federal taxation of inheritance.
Both state and federal taxation of inheritance are real. Federal taxation of inheritance may wave it when larger parts of the estates are not substantial to be charged. Like in the case of federal estate tax, state taxes are collected only above certain margin or level.
The main contrast is that in clear cut difference, there is no real federal inheritance tax. However, a federal estate tax applies to estates with substantial value. The state's taxation of inheritance is collected only on the areas of an estate that exceeds those values. Consequently, while some states do not have and some do. Those that do, do not necessarily apply to certain amount unlike the federal taxation of inheritance.
Therefore, the comparison and contrast are established above.
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