Thursday, January 13, 2011

No Wisconsin Estate Tax For 2011 and 2012

As a result of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, approved by Congress and signed into law by President Obama on December 17, 2010, there is no Wisconsin estate tax for deaths in 2011 and 2012 unless action is taken by the Wisconsin Legislature to impose an estate tax.
A federal estate tax is imposed on estates of $5,000,000 or more. The credit for state death taxes paid has been eliminated for deaths in 2011 and 2012, which would have been the basis for Wisconsin's estate tax. The Act allows a deduction for state death taxes paid.
On January 1, 2013, EGTRRA sunset provisions would again apply with federal or state legislative action necessary to eliminate the Wisconsin estate tax for 2013.