Estate tax

deducted on an estate tax return

1, medical expenses paid within 1 year of death. 2, administration and funeral expenses. 3, expenses for selling property of an estate specifically to preserve the estate. 4, outright transfer to a surviving spouse (must be U.S. citizen) are deductible from the gross estate tot he extent the interest is included in the gross estate.

In 2011, Jim's will established a trust for his son Kevin and his grandsons. In 2021, a taxable termination occurred when Kevin died, and trust assets were distributed to grandsons Mark and John. Jim's executor allocated $1,500,000 of his exemption to the trust in 2011, which had a value of $6,500,000 at that time. When the taxable termination occurred in 2021, the trust assets' value increased to $12,500,000. State death taxes attributable to trust property were $500,000. What is the inclusion ratio used to calculate the GSTT?

1-{1500000/($6500000-$500000)}= 3/4 the inclusion ratio multiplied by the max federal estate tax rate determines the tax rate for a generation-skipping transfer. the inclusion ratio is 1 -- a fraction (exemption allocated to the trust/value of the property transferred into the trust - the sun of 1), federal estate taxes or state death taxes attributable to the property and paid by the trust and 2), charitable deductions with respect to the trust property.

Anna died January 20, 2021. John, the executor, filed Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, on June 30, 2021. John paid the tax due and distributed the assets on September 30, 2021. The assets were properly valued at $14 million on the date of death. The alternate valuation method was not elected. Generally, what is the last day that estate tax may be assessed upon recipients of property?

although the general period for assessment of estate tax is 3 years after the due date for a timely filed Form 706, the assessment period is extended additional fourth year for transfers from an estate. the due date is 9 months after the date of the decedent's death.

George, single and age 40, is covered by a pension plan at work. For 2020, George could have contributed and deducted $6,000 to his individual retirement account but could only afford to contribute $2,000, which he did on April 14, 2021. After April 15, 2021, George contributed $6,000. Since his modified AGI for 2021 was over $66,000, George computed that his reduced IRA deduction for 2021 was $600. Which of the following is NOT an option available for George?

the TP is allowed to make a contribution of up to $6000 with a penalty but only can deduct an amount that is determined by his or her income. a TP who has made a contribution in excess of the deductible amount 1), can take out the amount of the contribution that is on excess of the deductible contribution before his tax return due. 2), may leave the entire contribution in the IRA and deduct the allowable deduction. TP could not deduct an extra $4000 due to carryover from a previous year because the MAX deduction is still only $600, regardless of whether there is a carryover.