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News Letter 20 - November 2004 Inter-Est Sales to end after January, 2005
Some of you might have noticed that our
support has become slower since last summer. I
have cut back my hours and plan to retire at the end of January, 2005. At that time I will quit selling Inter-Est. I will still provide some support and computational
assistance to our users, but my response to questions will be slower. In February, 2005, I will post a copy of the
current release of Inter-Est on our web site for anyone to download should they desire. It will be in a standard ZIP file. If possible I will post updates as (or if) they become available. I have enjoyed working on Inter-Est and
with its users, but the time has come for me to retire.
I am sorry if my retirement causes anyone any inconvenience. Current Infaltion Rates
The inflation rate factors we have inserted into Inter-Est
to date are:
1999
101.67%
2000 103.41%
2001 106.83%
2002 110.33%
2003 112.50%
2004 114.33% While the new law makes the inflation rate adjustment less
important, you still need to keep the inflation rate adjustments current. At
this time I do not know the inflation factor for the year 2005. Federal
Interest Rate Change
Remember to keep your interest tables current. The
last few federal rate changes
are:
1/1/2002
6%
1/1/2003
5%
10/1/2003
4%
4/1/2004
5%
7/1/2004
4%
10/1/2004
5% Current
Changes since the last Newsletter
The current release of Version 3 is Release 113c. Major changes made since the last newsletter were: A number of changes have been made to the Estate Tax Report Writer and the Gift Tax Report Writer to adjust small format changes. These changes should not affect my commercial users. Credit for Prior Transfers, 2nd Limitation: This error would occur where there was a charitable deduction and a deduction for a qualified family owned business deduction. The charitable deduction proportation was computed using the QFOBI deduction in addition to JK&L. This error has been corrected. An error was found where the Net Transfer (Line 7 on the Worksheet for Sch. Q) exceeds the computed gross estate. This has been corrected. Sec. 6166 Election: An error was discovered in the computation of interest where there was a Sec. 6166 election and the estate elected to extend the maximum amount qualified on a protective election. This error appeared in an estate where an additional election was made not to prorate the first payment per Sec. 66012(j)(3);. The amount of tax the qualified fpr tje ;pw omterest rate (eitherr 4% or 2%) was not correctly reduced where the tax for an installment was prepaid. This has been connected. SDTC All and SDTC, Part Changes Changes have been made in the computation of State tax after 2004 and before 2010 where "SDTC, All", "SDTC, Part". or the "New York" method is selected. We were using the federal taxable without adjustments to compute the State tax where the State specifies a tax based upon the federal SDTC using a version of the Internal Revenue Code prior to 3001. We have corrected this and now back out the Sec. 2058 deduction for State Death Taxes. See Rev. Rul. 2002-86. Inter-Est now assumes that the Victims of Terrorism Tax Relief Act of 2001 does not apply to the State Computation. A feature was also added to support the input of a seperate state number for the aggregate gift taxes paid when using the "SDTC. All" and the SDTC, Part" provisions. After the year 2000, where one state uses the old SDTC table and a second state uses the new SDTC table the pro-ration of the creidt between the two states might not be correct. An additional option has been added to allow you to elect to use the federal unified credit for the current year using the old tables effective prior to 2002. Connecticut Changes: Change made to computation of estate tax for the last half of 2004. This temporary tax is based upon 1300% of the federal SDTC under pre-2002 law. Tax tables for Connecticut changed for dates of death after Feberay, 2003. This change is based upon new legislation as described by Connecticut to Special Notice 2003(13). New York Changes: Change made to coputations for years after 2000. Change made where out of state property, Sec. 2044 property and/or the decedent is a non-resident. Provision was made for the family owned business deductions for years after 2003. Provision was also made for the input of a separate state number for the aggregate gift taxes paid. Support for the New York family owned business deduction is added for estates with a date of death in 1998 and 1999. This support is limited to a carry over of the federal Sch. T amount to the state computation. The computation of the unified credit for New York between 2990 and 2000 has been changed for small estates where there is property located outside New York. the computation of this credit is based upon the tax computed on all property instead of just the tax on the New York property. Pennsylvania Changes: Change made to computation of tax after June 30, 2002. Pennsylvania decoupled their pick-up tax and then changed back to following the federal SDTC to compute their pick-up tax. The pennsylvania pickup tax (additional estate tax) was changed for dates of death after June 30, 2002. For these estates it now computes the pickup tax based upon federal law in effect for 2001. This will allow Pennsylvania to avoid the phase-out of the federal State Death Tax Credit. Maryland Changes: change made to the computation of tax after June, 2003. Only the Collateral Class remains taxable for the inheritance tax. Nebraska Changes: Nebraska has changed its tax table effective July 1, 2003. We have inserted the new Nebraska tax table. The new table and its application seem a little odd, so if you have any problems, please contact us. Indiana Change: An error was found in our computation of Indiana state tax. We had failed to adjust the exemption for Class A when the law was changed as of "7/1/97". This has been corrected. ET Report Writer Change: An error in the computation of Form 4349 in the ET Report Writer was corrected. The input options for the limitation to the estate tax election selection was set up incorrectly. This has been corrected. GT Report Writer Change: The Unified Credit for Prior Periods was incorrect for periods after the first entered period where there was an adjustment to the unified credit. Web Site and eMail Address
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