Estate tax/gift tax

Question 1

part of basis step up rationale is..

Answer 1

estate tax will already tax it, so we dont want to tax twice.

Question 2

Estate tax applies to..a

Answer 2

about 1% of estates.

Question 3

Estate tax exemption

Answer 3

5/10 million, but 1014 still applies, regardless of whether your estate is taxed.

Question 4

Gift tax backs up…

Answer 4

estate tax. So you cant give away everything to avoid the tax.

Question 5

gift tax lifetime limits

Answer 5

5/10 million. (same as estate and they count against eachother_

Question 6

annual exclusion on gifts

Answer 6

14/28 per gifted individual per year, with no tax consequences either way.