STUDENT, Are you sure you are not criss-crossing the critical terms here of "estate" and "income"? I am almost certain that you are, chiefly due to the highly relevant fact that the figures you cite are fluttering dangerously close to exact, established Internal Revenue Service thresholds for income, and the amount it would thus be (finally) taxed upon death (as an estate). [Note, too, it is very important you may have inadvertently added a zero in the first number you listed: I would wager it is supposed to be "$5,800.00," making it mirror the following "tax free limit" of $5,430.00. ] Taking all this information into account, the correct Answer is no, you do not "have time" to get the final figure "below" any necessary threshold in order to minimize the tax liability of the estate (especially if it indeed is annual income). The death has already taken place; spending-down to comply is not an option (I think in the old days, that may have been an entertaining Eddie Murphy movie). More specifically, in 2014, your difference in tax would be considerable: At a flat fee of $1,200 plus 28 percent of the "overage" -- as opposed to a mere $375 lump sum and 15 percent rate, IF you magically succeeded in somehow bringing down the income level (which, as we have duly noted, cannot be done after death). Hope this helps. daj
HI, sassidbrown(!)~...THANK You, btw, for besting me. I appreciate that. Back to the Question: I may be missing something here, but the (figure) format in which you write "$5,800,000.00" implies an estate of nearly six million U.S. dollars, which most assuredly would be taxed to obliteration under almost any formula applied. I again, respectfully, ask -- are you sure you don't mean "$5,800.00"? [We'll get this worked out, and I will check back for your reply.] Also, please clarify with finality whether we are discussing an estate in this amount, or an annual (taxable) income stream. -- Dr. Dave*
PART II [see Above]: ... With regard to clarification, please "drop" (or omit) the "cents" in the equation; that is, the two zeros to the right of the decimal point (which indicate merely the exact amount below one dollar). I feel this is unduly confusing the issue and exact amount. And note here, even without the confusing cents-column (last two zeros), that you have listed four zeroes (total) in your Original Question but now place six zeroes in your follow-up query. I am mightily mixed-up, but bound and determined to answer this question with clarity and accuracy. - Dr. D --P.S. First off, we must establish the correct number of zeroes in the original amount of money; then, we will progress from there. Cheers; all the best.~
PART III [see above comments]: ... So, please answer the following queries (completely) so that I may more completely answer your Question:
a) Are you speaking of an estate net worth, or an annual stream of income (for the past year)?
b) What is the exact amount (with no 'cents' listed) of the estate (or income stream)? THANK You. :)
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