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July 14, 2009
Jackson's Estate Tax
One source estimates that Michael Jackson's estate could be liable for $80 million in estate taxes. The estate tax is usually due 9 months after the individual dies, however, payment plans are available as are interest-bearing extensions.
The exact amount of estate tax will depend on the amount of debts. The federal estate tax is 45% of the estate after a number of deductions are applied, including charitable transfers, funeral costs, and attorney fees.
Had Michael Jackson died 6 months later, his estate could have benefited from the current plan for no federal estate taxes in 2010; however, this law will likely change before it takes effect.
See AP, Big Tax Bill Looms For Jackson Estate, CBS News, July 10, 2009.
July 14, 2009 in Current Events, Estate Administration, Estate Tax | Permalink
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