2 Overview Students 2009

2 Overview Students 2009 - Estate and Gift Tax Introducing...

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Estate and Gift Tax SUBTITLE A: INCOME TAXES SUBTITLE B: ESTATE & GIFT TAXES Chapter 11: Estate Tax Subchapter A: Estates of Citizens & Residents Introducing a new part of the Code!
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Subtitle B - Estate and Gift Taxes SUBCHAPTER A - ESTATES OF CITIZENS OR RESIDENTS PART I - TAX IMPOSED § 2001 Imposition and rate of tax § 2002 Liability for payment PART II - CREDITS AGAINST TAX § 2010 Unified credit against estate tax § 2011 Credit for State death taxes § 2012 Credit for gift tax § 2013 Credit for tax on prior transfers § 2014 Credit for foreign death taxes § 2015 Credit for death taxes on remainders § 2016 Recovery of taxes claimed as credit PART III - GROSS ESTATE § 2031 Definition of gross estate § 2032 Alternate valuation § 2032A Valuation of certain farm, etc, real property § 2033 Property in which the decedent had an interest § 2034 Dower or curtesy interests § 2035 Adjustments for certain gifts made w/i 3 yrs of decedent's death
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Subtitle B - Estate and Gift Taxes Part III Gross Estate (cont.) § 2036 Transfers with retained life estate § 2037 Transfers taking effect at death § 2038 Revocable transfers § 2039 Annuities § 2040 Joint interests § 2041 Powers of appointment § 2042 Proceeds of life insurance § 2043 Transfers for insufficient consideration § 2044 Certain property for which marital deduction allowed § 2045 Prior interests § 2046 Disclaimers PART IV - TAXABLE ESTATE § 2051 Definition of taxable estate § 2053 Expenses, indebtedness, and taxes § 2054 Losses § 2055 Transfers for public, charitable, and religious uses § 2056 Bequests, etc, to surviving spouse § 2056A Qualified domestic trust § 2058 State death taxes
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Imposition of Estate Tax Sec. 2001 Imposition and rate of tax (a) Imposition A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States (b) Computation of tax
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What is the estate tax?
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Estate Tax What? Tax on FMV of property owned at death Gross or net?
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Estate Tax: Calculation FMV of property at death Deductions (funeral, administrative, debts, taxes) Net Wealth Charitable deduction Marital deduction Taxable estate + Prior taxable gifts Total taxable transfers Gross tax Credits Tax due
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Estate Tax History When? Why? How avoid? Now?
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Repeal of Estate Tax 2010 RESURRECTION IN 2011! 2010 GOOD TIME TO DIE! GOOD TIME FOR MURDER!
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The Latest on the Estate Tax The Permanent Estate Tax Relief Act of 2006 HR 5638: Passed by House, June 22, 2006 $5,000,000 exemption per person – Married couple: unused amount carries over to surviving spouse Rates – Estates $10 - $25 million taxed at the current capital gains rate, or 15 percent – By 2011, the capital gains rate could rise to 20 percent – Estate tax on $15,000,000 ($25 million less $10 million) $2250 million to $3 million, depending on the tax rate Heirs would thus receive no less than $22 million – Estates valued above $25 million would be taxed at twice the capital gains rate, or 30 percent at today's rates, perhaps 40 percent by 2011
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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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2 Overview Students 2009 - Estate and Gift Tax Introducing...

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