Gifting strategies, gift, tax, compliance, and gift tax calculation Flashcards
What does Inter-vivos gifting mean?
Among the living made while they transfer is alive
Gifts of a future interest do not qualify for the annual gift exclusion. What are the exceptions to this?
Gifts in trust of future interest on behalf of minors
2503(c) trusts
Crummy trusts
529 plans
What are the rules for gifts to non-citizen spouses
Non-citizen spouses do not qualify for the unlimited marital gift exclusion
Super annual gift tax exclusion of $185,000
What are the two conditions that must be met to claim increase basis on gifted property
Must be appreciated property and gift tax must’ve been paid by the donor
What are the gift tax filing requirements?
- A gift tax return form 709 must be filed by any individual donor who gives any of the following
- More than $18,000 (2024) to any non-spouse
- A gift of a future interest in any amount
- A gift for which spouses elect gift splitting
What are the gifts that are fully deductible for gift tax purposes thereby reducing the taxable gift amount to zero?
- Qualified payments in any amount made directly to an educational institution for tuition
- Qualified payments in any amount made directly to a provider of medical care
- Gifts to a spouse, provided they are not a terminable interest
- Gifts to a qualified charity
- Gifts to a political organization for its use
- Gifts to the President of the United States
How is community property treated in gift splitting?
It is** automatically split 18,000** from each spouse because it is considered jointly owned
In the current tax year, what is the amount that can be given to one individual without causing a federal gift tax?
$13,610,000 plus the $18,000 exclusion for a total of $13,628,000
What is the federal estate tax form and what is the federal gift tax and GSTT form?
Federal state tax form is formed 706
Gift tax and GSTT is filed on formed 709
