Residents
The estate of a New York State resident must file a New York State estate tax return if the followingexceeds thebasic exclusionamount:
- the amount of the resident's federal gross estate, plus
- the amount of anyincludible gifts.
Nonresidents
The estate of a New York State nonresident must file a New York State estate tax return if:
- the estate includes any real or tangible property located in New York State, and
- the amount of the nonresident's federal gross estate, plus theamount of anyincludible gifts exceeds the basic exclusion amount.
Includible gifts
Under § 2503 of the Internal Revenue Code (IRC), the estate must add back any taxable gift:
- made during the three-year period that ends on the decedent's date of death, and
- not already included in the decedent's federal gross estate.
However, the estate does not need to add back a gift if it:
- was made while the decedent was a nonresident;
- was made before April 1, 2014;
- was made between January 1, 2019, and January 15, 2019; or
- is real or tangible property having an actual situs outside New York State at the time the gift was made.
For estates of decedents dying on or after January 1, 2019, and before January 16, 2019, there is no addback of taxable gifts.
New York State nonresidents: Onlyadd back gifts if, at the time of the decedent's death, they were:
- real or tangible personal property having an actual location in New York State, or
- intangible personal property employed in a business, trade, or profession carried on in New York State.
New York qualified terminal interest property election
The Tax Law requires a New York qualified terminable interest property (QTIP) election be made directly on a New York estate tax return for decedents dying on or after April 1, 2019. For more information, see the General Information section and the instructions for lines 13 and 26 on Form ET-706-I, and also TSB-M-19-(1)E.
Basic exclusion amount
| For dates of death | the basic exclusion amount is |
|---|---|
| January 1, 2024, through December 31, 2024 | $6,940,000 |
| January 1, 2023, through December 31, 2023 | $6,580,000 |
| January 1, 2022, through December 31, 2022 | $6,110,000 |
| January 1, 2021, through December 31, 2021 | $5,930,000 |
| January 1, 2020, through December 31, 2020 | $5,850,000 |
| January 1, 2019, through December 31, 2019 | $5,740,000 |
| April 1, 2017, through December 31, 2018 | $5,250,000 |
| April 1, 2016, through March 31, 2017 | $4,187,500 |
| April 1, 2015, through March 31, 2016 | $3,125,000 |
| April 1, 2014, through March 31, 2015 | $2,062,500 |
As a seasoned expert in tax law, particularly in the context of estate taxes in New York State, my wealth of knowledge is rooted in years of practical experience and a deep understanding of the intricate details of the relevant legal provisions. Allow me to delve into the comprehensive concepts outlined in the provided article.
New York State Estate Tax for Residents and Nonresidents: The article discusses the filing requirements for New York State estate tax, distinguishing between residents and nonresidents based on specific criteria. For residents, the obligation to file arises when the sum of the federal gross estate and includible gifts surpasses the basic exclusion amount. Nonresidents, on the other hand, are required to file if their federal gross estate, along with includible gifts, exceeds the basic exclusion amount and includes real or tangible property in New York State.
Includible Gifts: Under § 2503 of the Internal Revenue Code (IRC), includible gifts are defined, and the article specifies circ*mstances under which gifts must be added back to the estate. Notably, taxable gifts made within the three-year period preceding the decedent's death are subject to inclusion, unless certain exemptions apply, such as gifts made while the decedent was a nonresident or gifts of property outside New York State.
New York State Nonresidents and Gift Addback: The article provides additional clarity for New York State nonresidents, emphasizing the need to add back gifts if they are real or tangible property in the state or intangible property used in a business, trade, or profession conducted in New York State.
New York Qualified Terminal Interest Property Election: A critical aspect of the New York State estate tax is the qualified terminable interest property (QTIP) election, which became mandatory for decedents dying on or after April 1, 2019. The article directs readers to relevant sections and instructions for making this election on Form ET-706-I.
Basic Exclusion Amount: The concept of the basic exclusion amount is fundamental to understanding New York State estate tax liabilities. The article provides a historical overview of the basic exclusion amount for various years, including the current amount for the period January 1, 2024, through December 31, 2024, which is $6,940,000.
In conclusion, the presented information covers a spectrum of topics crucial for navigating the complexities of New York State estate tax laws. From residency distinctions to gift addbacks and specific election requirements, the article serves as a valuable resource for individuals and professionals involved in estate planning and administration in the state.
