Estate Tax-MT - ESTATE & GIFT TAX Prof. Todres "To...

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Unformatted text preview: ESTATE & GIFT TAX Prof. Todres "To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare others, who, or whose fathers have not exercised equal industry and skill is to violate arbitrarily the first principle of association, 'the guarantee to ever of a free exercise of his industry, and the fruits acquired by it." ---Thomas Jefferson By: Matthew Tomkiel Class of 02 Final Exam: Open book Calculators OK No computer Touch all bases. Authority for everything. Estate Tax Todres 990-6627 TABLE OF CONTENTS: (insert here). Starting 2002, annual gift tax exclusion has been indexed up to 11k from 10k per year per donor. Introduction: EGTRRA --> Economic Growth and Tax Relief Reconcilliation act of 2001 Kicks in 2002 Purposes: Revenue collection Prevent the accumultion of wealth Raise very little revenue in reality Purpose of Generation Skipping Tax: Backstop to estate tax, a preventitive measure to prevent people from avoiding tax. Some states have eliminated part of the rule of perpetuities in order to avoid transfer tax. Generation skipping tax levies a tax to account for avoided transfer tax for each generation skipped. EGTRRA 2001 : Originally sold to public as a repeal of the transfer tax.-Raised unified credited to $1 million from 675k. professor says, "I can live with this, it's not that big a change." considers it a disaster though. (liberal wacko) -Decreased marginal tax rate. maximum was 55% Will drop to 45% in 2007-2009-Estate tax and generation skipping tax is repealed in 2010 HOWEVER, in 2011, the repealed taxes come back and the whole system goes back to pre-EGTRRA-Gift tax is NOT getting repealed Basis: Right now, step-up basis to FMV at time of death. Section 1014 When estate and transfer tax are repealed, Basis will become carryover basis. Will have significant impact on tax planning.-------- Most basic outside source for tax purposes are the reporters: ex. CCH Reporter designed to be useful for day-to-day practice-Reporter contains: Statute, excerpts from leg history, treasury regs, editorial explanations, annotations to cases, rulings Weekly updates -Treatises: Murten's, bidker(excellent), johnson's sucks., RIA Tax Coordinator (practice oriented)-Tax Coordinator has a great index-BNA Tax management portfolios: Each one outlines an area of law. Estate and Gift tax is very extensive. Also gives copies of very useful information, treaties, draft agreements, practice documents, and an extensive bibliography. -Daily Tax report put out by BNA..current cases and legislation-Tax Notes--> Weekly publication. Widely read and very good. Letters written in response by readers besides tons of info. Congress relied on Tax Notes in drafting EGTRRA SOURCES OF TAX LAW :-Constitution: not many Constitutional issues anymore, lost all the court cases....
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This note was uploaded on 02/18/2008 for the course LAW 1030 taught by Professor Todres during the Spring '02 term at St. Johns Duplicate.

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Estate Tax-MT - ESTATE & GIFT TAX Prof. Todres "To...

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