The issues, in the order discussed in this article, are: (1) the taxability--or not--of capital gains; (2) the deductibility--or not--of capital losses; (3) the transferee's basis in appreciated property received by gift or bequest; (4) the amount of the deduction in the case of a charitable contribution of appreciated property; (5) the taxability--or not--of the rental value of owner-occupied housing; and (6) whether the base of the income tax was to be tax-exclusive or tax-inclusive.
It should also include the name and address of the supplier and the customer, the quantity and nature of the goods supplied, the scope and nature of the services provided, the amounts subject to tax according to the rate or exemption, the tax-exclusive unit price and any discounts or rebates if they are not included in the unit price and tax rate.
Absent the incorporation of charitable giving into Gl's testamentary plan (and ignoring for present purposes the benefits that could have been achieved by making additional tax-exclusive lifetime gifts), the $40 million tax bill is unavoidable.
By contrast, the gift tax on gifts made more than three years before death is tax-exclusive. The gift tax is based on the value of the property gifted without adding to the gift the amount of the gift lax paid.