How Do You Settle The Estate Taxes On A Small Business?
If the deceased was the sole owner of a small business, then they are responsible for the business as a part of their estate upon death (unless the business was exempt). In the case of joint ownership, the business passes on to the co-owner as a matter of course and the value of the business is not included in the estate. If the business is to be included, it is added into the estate and settled as part of the regular estate taxes. Add up the total value of the properties of the deceased as described by the IRS. This is the value of the estate. If this value exceeds $2 million, then federal estate tax is due. Pay the taxes to the federal government within the designated nine months. This will include the small business.
