FR3 Flashcards
What are the Gains excluded/deferred/disallowed?
H. omeowners exclusion (500kMFJ,250kS, and own 2/5 years
I. novoluntary exclusions(destruction, theft, condemnation)
D. ivorce property settlements (nontaxable)
E. xchange of LKE
I. nstallment sale (GP test)
T. reasury and capital stock (no gain on own stock)
What are the disallowed losses on disposition of assets?
W. ash sales - sold or repurchased within 30 days
R. elated party transactions - losses disallowed gains taxed
A. nd
P. ersonal losses
What is the basis that used in for inherited property when electing alt valuation date but sold before then?
use sale price on date before alt valuation date and then no G/L
What does right of survivorship mean?
That when one spouse dies, they include 50% of the property owned by the couple, regardless of which souse furnished original consideration
What types of gifts are unlimited?
- payments to educational institution
- payments made directly to health care provider for medical care
- charitable gifts
- Marital deductions
What are some example of future gifts?
- Reversions - gifting assets and later getting property back
- Remainders - distributed at some future time
- Trust income interest - where distributions at a future time to the trustee
What are some examples of present interest gifts?
- outright gifts of cash or property, trust income int(more frequent and mandatory), life estates, estates for term certain, bonds or notes, and unrestricted transfers
What are 2 examples of incomplete gifts?
- conditional gift- gift is subject to condition
- revocable gift- original owner has power to retain
What are items fully includable in decedents gross estate upon death?
- FMV at date of death or alt valuation date
- includes all prop that that decedent had ownership at death
- All property entitled to be received(including income in respect of decedent)
What are some gifts that are not includable in the gross estate?
Gifts made within 3 years of donors death are not included
