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15 Cards in this Set
- Front
- Back
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what is the estate tax exclusion for non-resident aliens?
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$13,000 total
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what are some deductions allowed against the gross estate?
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charitable
marital funeral and administration expenses QDOT |
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what is the applicable credit amount?
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IRC 2010
Credit equals tentative tax on applicable exclusion amount (e.g. in 2009, exclusion amount was $3.5M, therefore credit was just under $1.5M at 45%) |
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Who is required to file an estate tax return?
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706 must be filed by
deceased citizen or resident of the U.S. whose gross estate excludes basic exclusion amount or nonresident, non citizens with gross estates plus prior lifetime gifts total over $60,000 |
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What is the default rule for 2010 deaths?
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$5M exclusion amount and tax of 35%
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what is the alternate rule for 2010 deaths?
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no estate tax
but only up to $1.3M of basis adjustments and $3M of basis to surviving spouse |
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when is the estate tax return due
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9 months after death;
6 month extension available automatically payment must be made at 9 month deadline. |
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who must file the estate tax return
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the executor or trustee
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can a PR obtain an extension of time to pay tax?
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yes, for 12 months to 10 years on showing of reasonable cause
OR delay until 6 months after terminating interest if tax due on reversionary/remainder interest OR installment payments for closely-held business |
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How is estate tax attributable to estate property?
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tax attributable to entire property is charged against the corpus.
PC 20113. so no estate tax charged to income interst. |
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How does a PR handle need to pay estate tax when assets are held by nonprobate beneficiaries?
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PR should attempt recovery of prorata share of taxes from interested persons.
PC 20116 if not recoverable, prorate amongst beneficiaries subject to proration PC 20116 |
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what it the right of reimbursement with respect to estate taxes
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Any beneficiary who pays more than his or her prorata share of the estate taxes is entitled to reimbursement from those who did not pay their share of the estate taxes. Prob C §20117(a).
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what is the penalty for failure to timely file an estate tax return
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5% of net tax due for first month or part of month thereafter up to max of 25% of tax due
fraudulent failure - 15% per month; max of 75% |
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what is the penalty for failure to timely pay estate taxes?
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.5% of net taxes for first month and each portion of month thereafter, up to max penalty of 25%.
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are there any state tax returns
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not for CA residents dying after 12/31/2004
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