Tax - Estate Trust Taxation Flashcards

1
Q

Property transferred while taxpayer is living

A

Gift and Estate Taxation

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2
Q

$14,000 per year per spouse to each individual

In order to get the exclusion, the recipient must immediately acquire a present interest in the property and get unrestricted access to the property and all of its benefits

A

Gift and Estate Taxation

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3
Q

If the Gift is an annuity, use Present Value to determine the gross Gift

A

Gift and Estate Taxation

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4
Q

Gross Gifts
- 1/2 of Gifts (treated as given by spouse)
- Total # of donees x $14,000 exclusion
= Taxable Gift

A

Gift and Estate Taxation

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5
Q

Recipient must gain ownership and all rights to property to get the annual exclusion. If recipient merely gains a future ownership, then the present value of the Gift is 100% taxable to donor and cannot exclude from Gift tax calc

A

Gift and Estate Taxation

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6
Q

Tuition and medical expenses paid directly to the provider organization (note: NOT books or dorm fees)

Political contributions

Charitable Gifts

Unlimited Gifts to spouse

A

Gift and Estate Taxation

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7
Q

If a loss on sale, basis is FMV on the date of the Gift

If a gain on sale, basis is same as donor’s basis

No G/L if donor basis is less than sales price, and sales price is less than FMV @ Gift date

A

Gift and Estate Taxation

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8
Q

Calendar-year basis only

Due April 15

A

Gift and Estate Taxation

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9
Q

Income distributions are optional
Accumulation of income ok
Charitable contributions ok
Contributions using tax-exempt income are not deductible
Allowed personal exemption of $100

Key Point: Distribution of Trust corpus (principal) ok

A

Gift and Estate Taxation

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10
Q

Income distributions mandatory

Accumulation of income disallowed

No charitable contributions

Distribution of Trust corpus DISALLOWED

Allowed personal exemption of $300

A

Gift and Estate Taxation

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11
Q

Trusts can have a Net Operating Loss

Any unused NOL flows through to the beneficiaries

A

Gift and Estate Taxation

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12
Q

Expenses and fees from tax-exempt income are not deductible for either a Complex or Simple Trust

A

Gift and Estate Taxation

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13
Q

After the death of the donor

A

Gift and Estate Taxation

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14
Q

The First $5,250,000 is exempt with a 40% tax on amount above that

A

Gift and Estate Taxation

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15
Q

Medical expenses paid after death, but incurred within 1 year of death go on decedents personal tax return

A

Gift and Estate Taxation

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16
Q

Estates can have a Net Operating Loss

Any unused NOL flows through to the beneficiaries

A

Gift and Estate Taxation

17
Q

Cash and Property FMV at death, or alternate valuation.

A

Gift and Estate Taxation

18
Q

When two non-spouses jointly own property

FMV at death X % Ownership = Amount in Estate

A

Gift and Estate Taxation

19
Q

1/2 of marital assets go to deceased spouses Estate

A

Gift and Estate Taxation

20
Q

A, B, and C own property

If A dies, FMV of As share goes to heirs

A

Gift and Estate Taxation

21
Q

Property received through inheritance not income to recipient

Property value is FMV at date of death or 6 months later

If property is sold prior to 6 month date and the alternative date is used, FMV at date of sale is used to value property

Basis in property automatically assumes LT holding period

A

Gift and Estate Taxation

22
Q

DNI = Taxable Income Expenses (from income production)

Trust beneficiaries only pay tax if earnings are distributed

Estate beneficiaries pay tax on DNI, regardless if distributed

A

Gift and Estate Taxation

23
Q

If a tax exempt organization has more than $1,000 of UBI, it must file a Form 990-T

A

Gift and Estate Taxation

24
Q

Organized and Operated exclusively for exempt purposes

No earnings can benefit an individual or private shareholder

Cant attempt to influence legislation as a major part of its activities

Cant campaign politically

A

Gift and Estate Taxation