Estates and Trusts

Category: Estate and Donor's Taxes

For estates, the status of the taxpayer will depend upon the status of the decedent at the time of his death similar to the individual taxpayer. So, an estate as an income taxpayer can be a citizen or an alien.

When a person who owns property dies, the following taxes are payable under the provisions of the income tax law:

1. Income tax for individuals - to cover the period beginning January to the time of death.

2. Estate Income Tax- if the property is transferred to the heirs.

3. If no partition is made, individual or corporate income tax, depending on whether there is no settlement of the estate. And, if there is, depending on whether the settlement is judicial or extrajudicial.

Estates and Trusts