3 Gross Estate in General Students 2009

3 Gross Estate in General Students 2009 - FEDERAL ESTATE...

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FEDERAL ESTATE TAX CHAPTER 3 THE GROSS ESTATE
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Estate Tax Formula Deductions -Funeral and 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 -State death tax credit -Other credits Estate Tax liability FMV of all property at date of death Gross estate
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GROSS ESTATE § 2031 Definition of gross estate. (a) General. The value of the gross estate of the decedent shall be determined by including to the extent provided for in this part, the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated. § 2033 Property in which the decedent had an interest. The value of the gross estate shall include the value of all property to the extent of the interest therein of the decedent at the time of his death.
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Is everything included?
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Gross Estate (§ 2031) Definition: FMV of all property owned at death All property interests Real, personal, tangible, intangible, wherever located
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State of Pennsylvania Bond
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Helmsley Mausoleum
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On January 31, 1940, the first monthly retirement check from Social Security was issued to Ida May Fuller of Ludlow, Vermont in the amount of $22.54. She lived to be 100!
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Gross Estate Social security death benefit Lump sum payment to survivors Amount $255 Not included in gross estate Maximum benefit in 2008 Monthly amount: $2,185 Annual amount: $26,220
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Gross Estate in General – Definition: FMV of all property owned at death • All property interests • Real, personal, tangible, intangible, wherever located – No property is exempt except: • Burial plot (except salable portion) • Prepaid tuition accumulations • Conservation easements – Nonresident aliens • Subject to estate & gift tax on tangible assets located in U.S., stock of domestic corps and pshps • No marital deduction unless pass to QDT
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Is the gross estate the same as the probate estate?
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691
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Gross Estate: Accrued Income • Accrued items of income – Included in gross estate – Examples • Salary • Interest • Rent • Dividends • Retirement plans – Income in respect of a decedent
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Gross Estate: IRD Income in respect of a decedent (IRD) • Income to which decedent was entitled but which is not included on final 1040 due to accounting method – Accrued income of cash basis taxpayer • Included in gross estate • Income tax treatment – Recipient reports; carryover basis (no step-up) – Character same as if received by decedent – Recipient deducts estate tax attributable to IRD as itemized deduction
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Gross Estate:Wrongful Death Payment Life is not fair. Mr. Louis Brown of Los Angeles, better known as the father of Nicole Brown Simpson, won the case against his former son-in-law, O.J. Simpson, but now may be in trouble with the IRS. Simpson was acquitted of the June 12, 1994, murders of his ex-wife Nicole Brown Simpson and her friend, Ronald Goldman, by a criminal court jury in October 1995. But he was found liable for their
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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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3 Gross Estate in General Students 2009 - FEDERAL ESTATE...

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