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How is estate transfer tax calculated in Louisiana?

January 14th, 2014 10:48 pm

The estate transfer tax is calculated by determining a ratio of assets included in the federal gross estate attributable to Louisiana to the total federal gross estate. This ratio is applied to the state death tax credit allowable under Internal Revenue Code Section 2011. The portion of the state death tax credit allowable to Louisiana that exceeds the inheritance tax due is the state estate transfer tax.

The Economic Growth and Tax Relief Reconciliation Act of 2001 phased out the state estate tax credit between 2002 and 2005 and replaced the credit with a deduction for state estate taxes for deaths that occur after December 31, 2004. Because R.S. 47:2432 only imposes the estate transfer tax if a state death tax credit is allow against the federal estate tax, no state estate transfer tax is due for deaths after December 31, 2004. However, the Economic Growth and Tax Relief Reconciliation Act of 2001 provisions will sunset on January 1, 2011, and the Internal Revenue Code will revert to the provisions that were in effect before it was passed unless further legislation is enacted to make its changes permanent. If Congress fails to make the Act’s changes permanent and the state estate tax credit is restored, the state estate transfer tax will again be due.

Make a Smart Investment in Louisiana Real Estate

January 13th, 2014 10:28 pm

Louisiana can be a great place to buy rental and residential property. Before purchasing any land in the state, make sure you choose an agent who can represent and listens to your goals and expectations.

The vibrant economy makes Louisiana a good investment. The oil and gas industry has been doing well in the state and it has seen low unemployment rates compared to the rest of the country. Also, the state has been working vigorously to expand economic development projects in areas hit by Hurricane Katrina.

These reasons have positively affected the real estate market and encouraged people to relocate to the area. This is the reason why Louisiana can be a great place to purchase residential and rental property. The eclectic cities and calm rustic rural area creates an almost perfect, serene environment.

In addition, it can be a wise place to invest because the area is not feeling as much of the negative effects of the economy and in many areas real estate is appreciating. Before making a purchase, talk to a few real estate agents and tour a few areas throughout the state.

An individual may want to purchase rental property as a way to build their financial portfolio. Louisiana can be a great place to do so because of the many opportunities. You can purchase a set of apartments, townhomes, single-family houses, duplexes or condominiums.

Most individuals make a profit by either capital gains (upon the selling of the property) or rental income. You should decide what type of home you want. For example, older property may not have the same amenities and upgrades as newer homes. However, older buildings may be cheaper and have more character than newer ones.

Others choose to buy rental property in the cities within Louisiana, which can be more expensive than many of the suburbs and rural areas. In cities there are a lot of rental properties and for the most part more of the population is usually willing to rent.

Louisiana has many colleges and many of those areas can be a great place to purchase rental property. Students only stay in an area for a fixed amount of time and are less likely to buy a house. Also, areas with a large percentage of elderly people can be a great place to establish a retirement community.

Before you purchase anything in Louisiana, you should find a real estate agent that you can trust. A good real estate agent will listen to your requests and find areas in Louisiana that you may like. The agent will also help you find an area in your price range and may even help you find avenues where you can get financing.

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