The Tax Court agreed with Pierre and held that the check-the-box regulations do not "apply to disregard the LLC in determining how a donor must be taxed under the
Federal gift tax provisions on a transfer of an ownership interest in the LLC." (122) Thus, the court concluded that the "transfers to the trusts should be valued for
Federal gift tax purposes as transfers of interests in [the LLC1 and not as transfers of a proportionate share of the underlying assets of [the LLC]." (123)
(64) Thus, the minor differences between Alaska's DAPT statutes and South Dakota's initial DAPT statutes in their treatment of creditors with tort claims and creditors seeking child support and alimony could likely have been significant in either determining the
federal gift tax consequences to a settlor's transfers to the trust or in determining the federal gross estate of a settlor for federal estate tax purposes.
With regard to lifetime transfers other than a direct skip, an allocation is made on the
federal gift tax return.
Due to the $13,000 annual exclusion and $1 million
federal gift tax exemption, no
federal gift tax is due.
Federal Gift Tax Worksheet Current Year Q 902 Current Gifts - Annual Exclusions Q 916 - Qualified Transfers Exclusion Q 916 - Marital Deduction Q 919 - Charitable Deduction Q 920 - Total Reductions Current Taxable Gifts + Prior Taxable Gifts Total Taxable Gifts Tax on Total Taxable Gifts Appendix G - Tax on Prior Taxable Gifts Appendix G Tentative Tax Appendix G - Unified Credit Q 921
Federal Gift Tax The tax implications also include state gift tax (only a few states have one) where applicable, which in many instances can be greater than the
federal gift tax, because of the large credit and exemptions currently available under
federal gift tax law.
In the course of its gift tax study, SOI collected data from
Federal gift tax returns filed by individuals who gave gifts during 1997 and reported those gifts to IRS in 1998.
Chapter 17 includes the
federal gift tax (e.g., annual exclusion, deductions, and computing the tax), federal estate tax (e.g., gross and taxable estate, computing the tax, and credits), and the generation skipping tax.
Consider the merits of establishing a Grantor Retained Annuity Trust ("GRAT"), a gifting technique that could transfer future asset appreciation to family members at a reduced
federal gift tax cost.
Thus, Article 2(1)(a) makes the treaty applicable to: "In the case of the United States of America: The Federal estate tax and the
Federal gift tax, including the tax on generation-skipping transfers." [Id.] [emphasis added]
Although such contributions are considered completed gifts for
federal gift tax purposes, the annual exclusion of $10,000 per year per donee is more than sufficient to cover the annual maximum $500 contribution per donee (designated beneficiary).
unsatisfactory and contributed to enactment of a
federal gift tax in 1924
