Exclusion Provision (Gifts)

Question 1

Exclusion provision

Answer 1

102

Question 2

What is a gift

Answer 2

Family as one economic unit, unit isnt beter off with transfer

Question 3

What do you look for in gift?

Answer 3

Intent

Question 4

Test for gift

Answer 4

totality of circumstances

Question 5

CL gift

Answer 5

Doesnt apply to tax

Question 6

Gift value

Answer 6

1021-2

Question 7

Property received as inheritance

Answer 7

excluded 102 (a)

Question 8

Is gift a realization event?

Answer 8

Nope, can exclude full amoun from income, basis preserves gains

Question 9

Giving a gift (gain)

Answer 9

defers recognition of gain

Question 10

Gift tax paid

Answer 10

included in basis (101 5 )

Question 11

Third way for basis

Answer 11

3. Receiving a gift 102 C
4. After tax investment in property
5. Borrow money

Question 12

How to analyze gift

Answer 12

1. Start with duberstein 2. Look at intent (totality of circumstacnes) 3. mention 102 C, 4. Look to leg hist ad proposed regs.

Question 13

Gift with built in loss

Answer 13

Can’t shift loss 1015 A, Can shift income.

Question 14

With built in loss transferors take

Answer 14

basis if > FMV

Question 15

Taking property with built in loss =

Answer 15

FMV of property

Question 16

Advise on transfering with built in loss?

Answer 16

never, since cant transfer loss, it vanishes. sell, take loss, give cash to partyy.

Question 17

Income by inheritance

Answer 17

not taxed 102

Question 18

Great basis in the sky

Answer 18

1014, eliminates gain since transferer takes FMV at time without paying tax.

Question 19

advise on propetty..

Answer 19

die, then trasnfer, avoid taxes.

Question 20

Interest income on gifts

Answer 20

is taxed

Question 21

Great basis in sky- can transfer through:

Answer 21

WILL, intestacy, JT, community property, doesnt matter.

Question 22

1014 Basis in the sky cuts both ways.

Answer 22

if there was a loss, its eliminated as well. Better off selling before you die, and deduct loss.