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Warsaw luxury hotelsOther Tax Issues of Interest A credit is an amount that eliminates or reduces tax. You areautomatically given a unified credit of $211,300 to use over your lifetime. You subtractthe unified credit from any gift tax that you owe. If you do not use the entire $211,300to eliminate the gift tax, your estate can use the rest to eliminate or reduce estate tax. Credit's Effect. The credit of $211,300 eliminates taxes on atotal of $650,000 of taxable gifts and taxable estate. You use the credit to eliminate gift tax on up to $650,000 oftaxable gifts you give during your lifetime. If you give less than $650,000 of taxablegifts during your lifetime, any remaining credit is used to eliminate or reduce tax thatmay be owed on your taxable estate. For examples of how the credit works, see Applying the UnifiedCredit to Gift Tax and Applying theUnified Credit to Estate Tax. Unified Credit Increases Hoteles de estadia nocturna ToulouseThe unified credit for gift and estate taxes increases to $202,050for gifts made in 1998 and for the estates of decedents dying in 1998. Previously, thisamount was $192,800. The following table lists the unified credit for years after 1998. Unified Year Credit: 1999 $211,3002000 and 2001 220,5502002 and 2003 229,8002004 287,3002005 326,300After 2005 345,800 Important References Publication 950 Estate and Gift TaxesPublication 553 Highlights of 1999 Tax Changes |
