Question 1

Does this calculator charge New Mexico estate tax?

Accepted Answer

No. In the implemented calculation, New Mexico estate tax and New Mexico inheritance tax are always $0 for the supported 2024, 2025, and 2026 death years. The calculator can still produce federal estate tax or federal GST tax. Its interface notes that the stated New Mexico repeal date should be independently verified.

Question 2

How does community property affect the gross estate?

Accepted Answer

If the community-property checkbox is selected, the calculator includes exactly 50% of the amount entered as total community property. It then adds all entered separate assets. If the checkbox is not selected, the community-property line contributes nothing to the gross-estate calculation.

Question 3

How does DSUE affect the result?

Accepted Answer

The entered DSUE amount is added directly to the federal basic exclusion for the selected death year. The calculator compares the federal tax base against this combined exclusion and also calculates the federal credit by applying the same progressive tax schedule to the combined exclusion amount.

Question 4

How are prior taxable gifts handled?

Accepted Answer

Earlier taxable gifts are added to the taxable estate after deductions and any modeled annual-exclusion gifting. This creates the federal base used for the exclusion comparison and tentative tax calculation. The calculator does not apply a New Mexico gift tax or New Mexico gift add-back.

Question 5

How does the gifting-years calculation work?

Accepted Answer

The calculator first limits each annual gift to its encoded annual-exclusion amount, multiplies that value by the number of donees, and removes that amount from the estate for each tested year. It then searches for the smallest whole number of years that produces zero total transfer tax within the selected maximum horizon.

New Mexico Estate Tax Calculator