The Transfer Tax Law

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: Class 3? All other persons or corporations to whom transfers are subject to tax. Transfers not exceeding $500 are exempt from tax, but the entire transfer, if in excess of $500 is subject to tax. (Sec. 221-a, par. 3, page 29.) The Rates of Tax Class 1 Class 2 Class 3 Upon transfers up to $25,000 1% 2% 5% Upon transfers in excess of $25,000 up to $100,000 2% 3% 6% Upon transfers in excess of $100,000 up to $200,000 3% 4% 7% Upon transfers in excess of $200,000.. . 4% 5% 8% Subject to the respective specific exemptions. (Sec. 221-a, page 28.) Illustration of the application of the rates to a gift of $1,000,000 to one person under the respective classes: Class 1? (a) First $5,000, Exempt Next 25,000 @ 1% $250 75,000 @ 2% 1,500 100,000 @ 3% 3,000 Bal. 795,000 @ 4% 31,800 $1,000,000 $36,550 (Sec. 221-a, par. 1, page 28.) (6-c) First $25,000 @ 1% $250 Next 75,000 @ 2% 1,500 100,000 @ 3% 3,000 Bal. 800,000 @ 4% 32,000 $1,000,000 $36,750 The gift, in the latter example, being in excess of $500 no specific exemption is allowed. (Sec. 221-a, par. 1, page 28.) Class 2? First $25,000 @ 2% $500 Next 75,000 @ 3% 2,250 100,000 @ 4% 4,000 Bal. 800,000 @ 5% 40,000 $1,000,000 $46,750 The gift being in excess of $500 no specific exemption is allowed. (Sec. 221-a, par. 2, page 29.) Class 3? First $25,000 @ 5% $1,250 Next 75,000 @ 6% 4,500 100,000 @ 7% 7,000 Bal. 800,000 @ 8% 64,000 $1,000,000 $76,750 The gift being in excess of $500 no specific exemption is allowed. (Sec. 221-a, par. 3, page 29.) Non-taxable Transfers The following transfers are non-taxable: (a) Any and all property devised or bequeathed: (1) for religious ceremonies for decedent, or (2) to any bis...