Inheritance tax is paid at a rate of 40 percent for all amounts over 275 000.

Give a forumla which will calculate the tax due T, on an amount of money, M

Results 1 to 3 of 3

- Nov 23rd 2007, 09:09 AM #1

- Joined
- Nov 2007
- Posts
- 8

- Nov 23rd 2007, 09:42 AM #2

- Joined
- Apr 2005
- Posts
- 1,631

T = 40% of (M -275,000)

T = (0.40)(M -275,000) ------------answer.

*So if your inheritance is only 100,000,*

T = (0.40)(100,000 -275,000) = -70,000

then the Government will pay you 70,000.

How come the tax for inheritance less than 275,000 is not mentioned?

- Nov 23rd 2007, 09:47 AM #3

- Joined
- Nov 2007
- Posts
- 8