Virginia Inheritance Tax
According to House Bill 5018 enacted by the 2006 General Assembly, the legislation repeals the Virginia estate tax for those estates whose property owner died on or after 1st July 2007. On the other hand those estates, the death of whose owners occurred before 1st July, 2007 are still under the estate tax provisions in the state.
But interestingly, the filing requirements for the fiduciary income tax remain the same regardless of the date of death of the property owner. In a way it can be concluded that the properties whose owners died on or after 1st July 2007 can exempt both the Virginia inheritance tax and Virginia estate tax.
The estate tax of Virginia is considered to be the most progressive tax of the state because it is levied on the people who have at least $2 million estates in their name when they die.
In the general way, the Virginia estate tax refers to the tax imposed on the transfers of the estates of decedent residents of Virginia to their surviving spouse or to the children. The Virginia estate tax also takes into consideration of the estates of decedent nonresidents of the states having tangible personal property or real estate located inside the state of Virginia. The tangible personal property located inside the state or the intangible personal property attributable to the state by the alien decedents of the state also comes under estate taxation in Virginia. The Virginia Department of Taxation assesses and implements the estate tax in Virginia.
The penalties are charged on the due tax amount which are not either filed or paid within the due date or the extended period in Virginia. The penalty assessed for the late payment is 5% of the tax amount that is due. Unlike other states of the USA, in Virginia there is no penalty imposed for late filing of the estate tax.
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Last Updated on : 5th July 2013