At the 2016 IRS Representation Conference, one panel covered
gift tax returns and the dangers they pose to unwary CPAs and taxpayers.
This research note deals with
gift tax development in the Czech Republic in relation to a long-discussed abolition of this tax.
In 2014, the annual
gift tax exclusion amount is $14,000.
Is a
gift tax deduction allowed for gifts to charity?
It increases the lifetime
gift tax exclusion from $1 million (as it had been since 2002) to a full $5 million for 2011 and 2012.
For instance, in 2010, the maximum annual
gift tax exclusion amount is $13,000 per person.
The Tax Court agreed with the IRS that
gift tax of approximately $10 million resulting from the gift of qualified terminable interest property (QTIP) by a decedent within three years before her death was includible in her gross estate under IRC [section] 2035(b).
Making gifts on a regular basis is an estate planning tool which can reduce estate taxes while avoiding
gift tax liability.
A May 8, 2009, Interim Guidance Memorandum SBSE-04-0509-009 on preparer penalty procedures for estate and
gift tax cases was issued by the IRS Small Business/Self-Employed Division.
3, the AICPA testified before the Senate Finance Committee on issues related to simplifying the planning associated with the estate and
gift tax, including the re-unification of the estate and
gift tax exemption amounts.
For
gift tax purposes, a gift can be broadly defined to include a sale, exchange, or other transfer of property from one person (the donor) to another (the donee) without adequate and full consideration in money or money's worth.
By using an IDGT, the grantor (transferor of the assets) is taxed on the income earned by the trust, without incurring a
gift tax on the payment of the beneficiary's income taxes.
