Business estate tax break is long gone — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Business estate tax break is long gone

Get PDF file

by on
in Small Business Tax

Q. I told my heirs that my closely held business interest is 100% exempt from federal estate tax. Am I right? G.R.B., Houston

A. Sorry, no. Previously, if your closely held business interest comprised at least 50% of your estate, among certain other requirements, the estate could deduct the amount from the taxable estate, up to an annual limit. This tax break, which was known as the “qualified ­family-owned business interest” (QFOBI) deduction, was repealed back in 2004. Nevertheless, recent proposals in Congress would reinstate a version of the QFOBI deduction for certain businesses and farms.

Tip: Other proposed legislation would completely repeal the federal estate tax.

Related Articles...

Leave a Comment

Previous post:

Next post: