Estate tax deduction. You may be entitled to a deduction for estate tax if you receive a joint and survivor annuity that was included in the decedent's estate.myspace unblock websites
You can deduct the part of the total estate tax that was based on the annuity, provided that the decedent died after his or her annuity starting date.juuni kokki translated
) Deduct it in equal amounts over your remaining life expectancy. You can take the estate tax deduction as an itemized deduction on Schedule A, Form 1040.
This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. Survivors of employees. Distributions the beneficiary of a deceased employee gets may be accrued salary payments, distributions from employee profit-sharing, pension, annuity, or stock bonus plans, or other items.
The treatment of these distributions depends on what they represent. Salary or wages paid after the death of the employee are usually the beneficiary's ordinary income.
If you are a beneficiary of an employee who was covered by any of the retirement plans mentioned, you can exclude from income nonperiodic distributions received that totally relieve the payer from the obligation to pay an annuity. juuni kokki translated
If you are entitled to receive a survivor annuity on the death of an employee, you can exclude part of each annuity payment as a tax-free recovery of the employee's investment in the contract.
You must figure the tax-free part of each payment using the method that applies as if you were the employee.
If the employee died before August 21, 1996, you increase the amount of the employee's investment in the contract by the death benefit exclusion.
Use the increased amount to figure the tax-free part of payments you receive from the employee's retirement plan.