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

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- Nov 23rd 2007, 10:09 AM #1

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- Nov 23rd 2007, 10:42 AM #2

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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, 10:47 AM #3

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