California Code of Regulations
Title 18 - Public Revenues
Division 2.5 - State Controller
Chapter 1 - Inheritance Tax
Article 2 - Imposition and Computation of Inheritance Tax
Section 13403 - Application of Exemptions or Exclusion
Current through Register 2024 Notice Reg. No. 12, March 22, 2024
(a) Specific Exemptions. The specific exemptions provided in Revenue and Taxation Code Sections 13801 to 13803, inclusive, come out of the lower rate brackets and the excess over the exemptions is taxed in the rate bracket or brackets where it would have been taxed had the exemption not been allowed (see Revenue and Taxation Code Section 13403). Consequently, if a parent dying in 1974 left a taxable estate of $50,000 distributed to a minor child, the $12,000 specific exemption then provided under Revenue and Taxation Code Section 13801 is applied to the first rate bracket leaving $13,000 taxable at the first rate bracket (3 percent), and $25,000 taxable at the second rate bracket (4 percent). Likewise if a parent dying in 1981 leaves a taxable estate of $50,000 passing to a minor child the $40,000 specific exemption provided by Section 13801, amended and effective as to decedents dying on and after January 1, 1981, is applied to the first rate bracket as to $25,000 and to $15,000 in the second rate bracket leaving $10,000 taxable at the second rate bracket (4 percent).
(b) Separate Property Exemption or Exclusion Between Spouses.
1. Amendment filed 7-2-81; effective thirtieth day thereafter (Register 81, No. 27).
Note: Authority cited: Section 14740, Revenue and Taxation Code. Reference: Section 13403, Revenue and Taxation Code.