Estate Planning - Irc

Front 1

2056

Back 1

Marital Deduction

Front 2

6161

Back 2

12 month extension to PAY

Front 3

6081

Back 3

Extension to FILE estate tax return

Front 4

2518

Back 4

Qualified disclaimer.
Treated as if predeceased.
Must be filed within 9 months.

Front 5

2001 (c)

Back 5

Rate schedule for estate tax

Front 6

2054

Back 6

Estate tax deduction for casualty losses

Front 7

2053

Back 7

Estate tax deductions for funeral and administration expenses

Front 8

2032A

Back 8

This provision provides a favorable method of valuing interests in farms or certain real estate assets at the value being used, not the best or highest value

Front 9

754

Back 9

Election to increase tax basis of flowthrough entity to reflect underlying assets

Front 10

303

Back 10

Sales of stock that can be treated as redemptions

Front 11

1014

Back 11

Step up in basis

Front 12

615

Back 12

Simple trust is one that is required to:
1) distribute all of its income currently
2) makes no distributions other than of current income, and
3) has no provision for charitable contributions.

Front 13

2035

Back 13

Three year rule
(Only applicable to assets which may rapidly appreciate at time of death - life interests (2036), life insurance (2042), etc.)

Exception for bona fide payment.

Front 14

2042

Back 14

Proceeds of insurance included in taxable estate if:
- "incidents of ownership"
- or if proceeds were payable to estate.

Front 15

441

Back 15

Fiscal year for estate ends 12 months after date of death

Front 16

645

Back 16

Election to treat trust and estate as one entity for income tax purposes

Front 17

2055

Back 17

Estate tax deduction for charitable transfers

Front 18

101

Back 18

Insurance payable to a beneficiary is generally not includable in the beneficiary's income tax. However, transfers for value are includable, unless the purchaser is a partner of the deceased.

Front 19

6166

Back 19

Deferral of estate taxes up to 14 years on closely held businesses

Front 20

2010

Back 20

Credit against estate tax

Front 21

2501 (a)

Back 21

Imposition of gift tax

Front 22

2039

Back 22

Retirement benefits are includable in taxable estate

Front 23

2041

Back 23

General powers of appointment are included in taxable estate. Limited powers of appointment are not.

Front 24

2514

Back 24

General powers of appointment create taxable gifts. Limited powers of appointment do not.

Front 25

2036 (a)(1)

Back 25

Transfers of property over which the taxpayer retained either

(a)(1) the enjoyment, or
(a)(2) control,

over the asset during life are includable.

Exception for bona fide payment

Front 26

2652 (a)(3)

Back 26

Reverse Q-tip

Front 27

2702

Back 27

Split interest trusts (QPRTs and GRITs)

Front 28

Subtitle B

Back 28

Estate and Gift Taxes

Front 29

2056 (b)(7)

Back 29

Q-tip provisions

Front 30

1362

Back 30

S corp election

Front 31

Chapter 14

Back 31

Special valuation rules

Front 32

2038

Back 32

Taxable estate includes property when decedent posssesses power at death to alter, amend, revoke or terminate (either alone or with someone else)

Front 33

Chapter 13

Back 33

GST Tax

Front 34

2033

Back 34

All property owned by decedent and transferred to another as a result of death is includable in taxable estate.
This is the bulk of the estate.

Front 35

Chapter 12

Back 35

Gift tax

Front 36

2001 (a)

Back 36

Estate tax is imposed on death on all citizens or residents of the US

Front 37

Chapter 11

Back 37

Estate tax

Front 38

2057

Back 38

Deduction for qualifying family owned businesses

Front 39

671

Back 39

Grantor trust rules

Front 40

72

Back 40

TTT

Front 41

2037

Back 41

Reversionary interests included in taxable estate. Included if:
- beneficiary must survive the transferor to possess or enjoy and
- if the transferor possesses a reversionary interest worth more than 5% prior to his death

Front 42

651

Back 42

Complex trust rules. A trust that is not a simple trust is a complex trust

Front 43

1361 (d)

Back 43

Q-sub

Front 44

2040

Back 44

Generally joint interests are includable unless consideration furnished (?). If H&W, it's assumed 1/2 each. See Gallenstein.

Front 45

2032

Back 45

Taxpayer may elect alternate valuation at first to occur of 6 months after date of death or earlier postmortem disposition of property

Front 46

2031

Back 46

Taxable estate is generally valued at fair market value at date of death

Front 47

2043

Back 47

Consideration

Front 48

2703

Back 48

Provides two additional rules to be added to four Wilson-Lomb requirements in order for a buy sell agreement to fix estate tax values

Front 49

Rev. Rul. 59-60

Back 49

Lists factors used to value a closely held business

Front 50

2503 (b)

Back 50

Annual exclusion
needs to be a present interest

Front 51

Form 1023

Back 51

Application for recognition of exemption (for non-profits)
Fee for 1023 paid on 8718

Front 52

1014 (e)

Back 52

No full step up in basis for marital trust if gifted by non-decedent spouse within one year

Front 53

121

Back 53

Exclusion from sale of personal residence.
Must own and occupy residence 2 of past 5 years.
250k step up in basis per taxpayer.

Front 54

2207A

Back 54

Trustees of QTIP trust are required to pay pro rata tax on second death

Front 55

663(b)

Back 55

65 day rule - amounts paid within first 65 days are considered paid on last day of preceding tax year

Front 56

663(c)

Back 56

Substantially separate and independent Shares shall be treated as separate trusts