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Florida Inheritance Tax

Inheritance tax is a tax imposed on the privilege of receiving property by inheritance or legal succession and assessed on the value of the property received. Florida inheritance tax is no longer functional in Florida. It has been replaced by the Florida estate tax. In Florida, the estate tax is imposed on the personal and real properties owned by any individual at the time of his death.
Inheritance tax, estate tax, and death tax or duty is the names given to various taxes which arise on the death of an individual. It is levied on the property accruing to each beneficiary of the estate of a deceased person. The basic difference between estate tax & inheritance tax is that former is based on the value of all property left by the decedent, whereas latter is based on the amount that an heir receives.

Inheritance tax may be more difficult to administer than estate tax because the value passing to each beneficiary must be fixed, and this often requires complex actuarial calculations.

Inheritance taxes date back to the Roman Empire. In the U.S. inheritance taxes have always been collected by the individual states, while the federal government has imposed an estate tax.
In United States tax law, there is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate. However, this distinction does not apply in other jurisdictions; for example, if using this terminology UK inheritance tax would be an estate tax

In Florida, the gross estate includes the following types of properties, which may be wholly or partially owned:
  • Real Estate
  • Life Insurance
  • Annuities
  • Stocks
  • Bonds
  • Accounts Receivable
  • Notes Receivable
  • Equipment
  • Autos
  • Furniture
  • Artwork
  • Jewelry
  • Money

The estate tax system in Florida is usually termed as "pick up" tax system. In Florida, the total or a part of the state death tax credit permissible by the Federal government is picked up for taxation purposes. According to this system, until and unless it becomes necessary for an estate to file the Federal estate tax return, the estate tax is not imposed on that particular estate.

This is according to $2010 and 6018(a), Internal Revenue Code. (Source: Florida Department of Revenue) The estate tax is not imposed on an estate, if its gross value is less than the minimum requirements for filing Federal estate tax.

The estate tax in Florida is imposed on the basis of the Federal state death taxes credit. If the gross value of the estate is equal to or more than the minimum requirements for filing Federal estate tax, the form, which is to be filed with the Internal Revenue Services (IRS) for making payment of estate tax is known as the Federal Form 706. This form is also known as the United States Estate and Generation Skipping Transfer Tax Return. This has to be done within 9 months from the date of death.

Contact Details:
Florida Department of Revenue
Taxpayer Services
1379 Blountstown Highway
Tallahassee, FL 32304-2716
Tel: 800-352-3671



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Last Updated on : 5th July 2013

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