Computation of California 2% Portion of Deferred Tax 1999 - 2004
| Year of Death | Business Value Equal to Applicable Exclusion Amount | First $1,000,000 of Taxable Business Value | Inflation Factor | Adjusted $1,000,000 of Taxable Business Value Rounded to Next Lowest $10,000 | Total Business Value on Which State Death Tax (SDTC) is Computed | SDTC on Total Business Value | SDTC on the Applicable Exclusion Amount | Tax Deferred at 2%: SDTC on Total Business Value Less SDTC on Applicable Exclusion Amount |
|---|---|---|---|---|---|---|---|---|
| (b) x (c) | (a) + (d) | (f) - (g) | ||||||
| (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | |
| 1998 | 625,000 | 1,000,000 | 100.00% | 1,000,000 | 1,625,000 | NA | NA | NA |
| 1999 | 650,000 | 1,000,000 | 101.67% | 1,010,000 | 1,660,000 | 75,120 | 16,000 | 59,120 |
| 2000 | 675,000 | 1,000,000 | 103.41% | 1,030,000 | 1,705,000 | 78,360 | 17,000 | 61,360 |
| 2001 | 675,000 | 1,000,000 | 106.83% | 1,060,000 | 1,735,000 | 80,520 | 17,000 | 63,520 |
| 2002 | 1,000,000 | 1,000,000 | 110.33% | 1,100,000 | 2,100,000 | 80,100 | 24,900 | 55,200 |
| 2003 | 1,000,000 | 1,000,000 | 112.50% | 1,120,000 | 2,120,000 | 54,200 | 16,600 | 37,600 |
| 2004 | 1,500,000 | 1,000,000 | 114.33% | 1,140,000 | 2,640,000 | 37,580 | 16,100 | 21,480 |
| 2005 | 1,500,000 | 1,000,000 | 117.17% | 1,170,000 | 2,670,000 | NA | NA | NA |
| For estates of decedents dying on and after January 1, 1999 through December 31, 2003, the figures for the Business Value Equal to the Applicable Exclusion Amount, Applicable Credit Amount, and the amount of tax deferred at 2% are reduced in response to any Section 2057 Qualified Family-Owned Business Interest (QFOBI) deduction in excess of $625,000. The maximum QFOBI deduction of $675,000 results in an Applicable Exclusion Amount of $625,000 and an Applicable Credit Amount of $202,050. QFOBI deductions greater than $625,000 but less than $675,000 result in a sliding scale of adjustments to the Applicable Exclusion Amount and Applicable Credit Amount. |
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