7 Credits and Tax Payments Students 2009

7 Credits and Tax - CHAPTER 7 CREDITS AND PAYMENTS OF THE TAX Estate Tax Formula Gross estate Deductions-Funeral expenses-Administrative

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CHAPTER 7 CREDITS AND PAYMENTS OF THE TAX
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Estate Tax Formula Deductions -Funeral expenses -Administrative expenses -Debts -Losses -State death taxes Net wealth -Charitable deduction -Marital deduction Taxable estate + Post 1976 taxable gifts ( adjusted taxable gifts ) Total taxable transfers x Rate Tax on total taxable transfers -Gift taxes computed on post 1976 gifts -Unified credit -Other credits Estate Tax liability Gross estate
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Credits Available 1. Unified credit 2. Credit for gift taxes payable on post '76 gifts 3. Credit for gift taxes paid on pre '77 gifts 4. Credit for tax on prior transfers 5. Credit for foreign death taxes 6. Credit for state death taxes (repealed 2005)
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Unified Credit (Exemption) 1976-Current
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Unified Credit 2006-2008: $780,800 credit Equivalent exemption: $2,000,000 2009 $1,455,800 credit Equivalent exemption: $3,500,000 Reduction
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Unified Credit Reduction of unified credit Reduce by 20% of the amount of the specific gift tax exemption ($30,000) claimed between 9/9 - 12/31/1976 Pre-unification $30,000 gift tax exemption Unification 1977 12/31/76 Double dip Use exemption in window, no effect of credit 31 years ago If 60 in 1976, now 91 31 years ago If 60 in 1976, now 91
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Credit for State Death Taxes: Repealed for 2005
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Repealed State Death Tax Credit Former credit for state death taxes Repealed: phase out 2002-2005 Table amount Based on “adjusted taxable estate” Taxable estate $60,000 Adjusted taxable estate
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Credit for Gift Taxes Paid on Pre '77 Gifts Credit for gift taxes paid on pre '77 gifts If a taxable gift was made prior to 1977 and the gifted property is included in the gross estate (e.g., under the transferor §§ 2036, 2037, or 2038), § 2012 allows a credit for any gift tax paid 2
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Credits for Tax on Prior Transfers Estate tax 1 Estate tax 2 (Credit for Estate tax 1)
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Credit for Tax on Prior Transfers 0%
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This note was uploaded on 06/23/2009 for the course BUPA 516 taught by Professor Kulsrud during the Spring '09 term at IUPUI.

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7 Credits and Tax - CHAPTER 7 CREDITS AND PAYMENTS OF THE TAX Estate Tax Formula Gross estate Deductions-Funeral expenses-Administrative

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