Many Las Vegas residents have likely begun to gather their paperwork and other records in preparation for filing their 2014 federal and state income tax returns. Some who are also in the estate planning process may be hearing the term "estate tax" mentioned from time to time. Let's take a look at some estate tax fundamentals from the IRS website that can help our readers understand what this tax is and how to figure out whether it might apply in a particular case.
When someone passes away, everything that person owns must be accounted for and could be subject to a tax on the right to transfer it. This is what we mean by the term estate tax. A few important points to take into consideration in this regard: for one thing, receipts, proofs of purchase and similar documentation are not necessary to establish the value of the items or property. Property valuation is based on current fair market value. (Note that this could be much higher or much lower than the value at the time of acquisition.)