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Bonds and Debentures or Certificates of Indebtedness issued by
any person, and all corporate securities issued with
$100 of face value or fraction thereof..
of money is given in a penal sum greater than the
Capital Stock, Original Issue. (Stamps must be attached
to the stock book, not to certificates.) On each $100 par value, or fraction thereof..
.05 Non-par value-actual value $100 a share..
.05 actual value less than $100 a share, on
each $20 of actual value or fraction .01 actual value more than $100 a share, on
each $100 of actual value or fraction .05
Capital Stock and Rights, Sales or Transfers. (Stamps must
be affixed-(a) To transfer book where transfer is
cate is delivered in blank.) On
par value stock, each $100 face value or fraction.. On non-par value stock, each share.....
Conveyances of Real Estate Not to Secure Debt. On consid
eration, less any lien or encumbrance at the time of
sale, over $100 and not over $500.. Each additional $500 or fraction thereof..
Entry of Goods, Wares or Merchandise at any Custom House.
Not over $100 in value.
.25 .50 1.00
Entry for Withdrawal of Goods or Merchandise from Customs
Bonded Warehouses ....
Merchandise, Sales of, on Exchange for Future Delivery.
On each $100 in value of the merchandise..
Passage Tickets sold or issued in the United States for
passage by vessel to places not in the United States,
Canada or Mexico. Cost not to exceed $30....
1.00 Over $30 and not over $60.
3.00 Over $60.....
Passage tickets costing less than $10 are exempt. Playing Cards. On each pack containing not more than 54 cards...
IO Policies of Insurance (not including reinsurance policies),
issued by a foreign concern, when not duly signed
dollar or fraction of premium charged...
.25 Proxies for election of officers or for business meetings of
corporations (except religious, educational, chari-
The Estate Tax is levied against the transfer of the net estate of every person dying after 4.01 P. M. June 2, 1924, the hour the Revenue Act of 1924 was signed and became effective. It is imposed on the entire net estate, and not upon the shares of individual beneficiaries as in most States which have legacy, inheritance or estate tax laws. Gross Estate
The value of the gross estate is determined by including the value, at the time of death, of all the decedent's property, real and personal, tangible and intangible, wherever situated, to the extent provided in Section 302 of the Law. (See page 98.)
The entire proceeds of insurance receivable by the executor under policies taken out by the decedent upon his own life are taxable. According to the Treasury Department, this includes death benefits paid by fraternal organizations and insurance taken out to meet the estate tax or any other taxes or charges enforceable against the estate.
Insurance payable to named beneficiaries is exempt up to $40,000. For example, if the decedent left life insurance payable
to three beneficiaries in amounts of $10,000, $40,000 and $50,000 (total $100,000), the amount of $60,000 would be taxable under the Revenue Act of 1924. Whether or not the Federal Government may tax insurance of this character has not yet been finally settled. In the case of Lewellyn vs. Frick (United States District Court, Western District of Pennsylvania, decided June 5, 1924) it was held that insurance payable to named beneficiaries was not taxable. This case has been appealed to the Supreme Court of the United States.
Stock of a domestic corporation, bonds actually within the United States, and moneys due on open accounts by domestic debtors are regarded by the Treasury Department as property within the United States in the case of a non-resident decedent. On the other hand, insurance money received upon the life of a non-resident decedent, and deposits with domestic banks by a non-resident who was not engaged in business in the United States at the time of his death, are not regarded as property within the United States.
The net estate of a resident is determined by deducting from the gross estate the items allowed under Section 303 (a) of the Law; of non-residents by deducting the items allowed under Section 303 (b). These deductions include, broadly speaking, debts, funeral and administration expenses, gifts for charitable, educational, religious and like purposes; casualty and theft losses, not covered by insurance, during settlement of the estate; and the value of any property which can be identified as having been received within five years before the death of the decedent by gift, bequest, devise or inheritance, on which a Federal gift or estate tax has been imposed; or which can be identified as having been acquired in exchange for property so received.
Income taxes on income received after the decedent's death are not proper deductions, nor are estate, succession, legacy or inheritance taxes deductible in computing the net estate.
Deductions in the cases of non-residents are allowed only if the executor includes in the return the value, at the time of death, of that part of the gross estate outside the United States. Rates of Tax
Estates of decedents, resident or non-resident, are subject to a tax equal to the sum of the following percentages of the value of the net estate:
30% 35% 409
Tax on Sep- Total Tax
Rate arate Amounts on Amounts Net Estate
of Tax in Column C in Column B I to $ 50,000
500 50,000 100,000 50,000 29
1,500 100,000 150,000 50,000 3%
3,000 150,000 250,000 100,000
7,000 250,000 450,000 200,000
19,000 450,000 750,000 300,000
46,000 750,000 1,000,000 250,000
76,000 1,000,000 1,500,000 500,000
151,000 1,500,000 2,000,000 500,000 18%
241,000 2,000,000 3,000,000 1,000,000 21% 210,000
451,000 3,000,000 4,000,000 1,000,000 24%
691,000 4,000,000 5,000,000 1,000,000
961,000 5,000,000 8,000,000 3,000,000
1,861,000 8,000,000 “ 10,000,000 2,000,000
2,561,000 more than
10,000,000 Exemptions and Credits
A specific exemption of $50,000 is allowed in computing the net estate of a resident decedent before these taxes apply. This exemption is not allowed in the case of a non-resident decedent.
The Federal estate tax may be reduced by estate, inheritance, legacy or succession taxes actually paid to any State or Territory or the District of Columbia on property included in the gross estate. The amount of this credit is limited to 25 per cent of the computed Federal tax. Executor Must File Return
The executor or administrator of an estate, within two months after qualifying as such — or, if there is no executor or administrator, anyone in actual or constructive possession of any property of the decedent, within two months after the death — must notify the Collector of Internal Revenue, and, under prescribed regulations, make a return:
(a) In all cases where the gross estate at the time of death exceeds $50,000.
(b) In the case of every non-resident any part of whose gross estate is in the United States. Personal Liability of Executor
The executor is personally liable for the payment of the estate tax to the amount of the full value of all assets of the estate which at any time have come into his hands. After filing a return for the estate, he may make written application to the Commissioner for determination of the amount of the tax and discharge from personal liability. Payment of Tax
The tax is due one year after the date of death, but if the Commissioner finds that payment in that time would impose undue hardship on the estate, he may grant an extension up to five years from the due date. If an extension is granted, interest at the rate of 6 per cent annually begins a year and six months after the date of death. If no extension is granted, interest is charged at the rate of 12 per cent annually from a year after the date of death. The tax is payable by the executor, and, so far as is practicable and unless otherwise directed by the decedent's will, is to be paid out of the estate before its distribution.
GIFT TAX Title III, Part II, Sections 319–324, Revenue Act of 1924
As part of the estate section of the Revenue Act, provision is made for the taxing of gifts made on or after January 1, 1924. The rates are the same as the estate tax rates. A tax return in duplicate is to be filed with the local Collector of Internal Revenue and the tax paid by the donor on or before March 15, if the aggregate of all gifts made during the previous calendar year exceeds the deductions mentioned below.
In the case of residents, to determine the amount subject to this tax, there is deducted from the aggregate of all gifts during the calendar year:
(2) gifts to or for the use of the United States, any State, Territory, political subdivision or the District of Columbia, and religious, charitable, etc., organizations;
(3) gifts aggregating $500 or less to any one person;
(4) the value of any property which can be identified as having been received within five years by gift, bequest, devise or inheritance, on which a Federal gift or estate tax has been imposed, or which can be identified as having been acquired in exchange for property so received.
Non-residents are not entitled to the $50,000 exemption. Taxable Transfers
According to Article 1 of Treasury Department Regulations 67 relating to the Gift Tax, taxable transfers may be effected by