Estate Tax Repeal - Good or Bad News for Planned Giving? - Part I

Estate Tax Repeal - Good or Bad News for Planned Giving? - Part I

Article posted in Legislative on 31 August 2000| comments
audience: National Publication | last updated: 15 September 2012
Print
||
Rate:

Summary

H.R. 8 (the "Death Tax Elimination Act of 2000"), if signed into law, would repeal the estate, gift, and generation-skipping taxes beginning in the year 2010. Further, H.R. 8 would require assets at death to have a carryover basis (rather than being "stepped-up" to fair market value). This article, the first part of a two-part series, describes the provisions of H.R. 8 in some detail. The second part of this article will then present a "pros" and "cons" type analysis of how such an enormous change in the transfer tax laws might impact charities and planned giving.

by: Emanuel J. Kallina, II, Esquire & Jonathan D. Ackerman, Esquire

Click here for Part II

Executive Summary

H.R. 8 (the "Death Tax Elimination Act of 2000"), if signed into law, would repeal the estate, gift, and generation-skipping taxes beginning in the year 2010. Until total repeal occurs, this bill would modify existing estate, gift, generation-skipping tax rules, and would reduce the rate and progressivity of these taxes. Further, H.R. 8 would require assets at death to have a carryover basis (rather than being "stepped-up" to fair market value). Finally, the bill would expand to availability of qualified conservation easements.

Introduction

On June 9, 2000, the House of Representatives passed by a 279-136 vote the "Death Tax Elimination Act of 2000,"1 which would phase in a repeal of the estate, gift and generation-skipping transfer taxes and replace these taxes with a carryover basis structure. The Senate, in turn, approved this bill, H.R. 8, on July 14 in a 59-39 vote. 2 H.R. 8 is similar to the estate tax repeal legislation passed by Congress and vetoed by the President in 1999. Although it is expected that President Clinton will veto H.R. 8, 3 the future of similar legislation after the upcoming elections is less certain. 4

This article, the first part of a two-part series, describes the provisions of H.R. 8 in some detail. The second part of this article will then present a "pros" and "cons" type analysis of how such an enormous change in the transfer tax laws might impact charities and planned giving.

Death Tax Elimination Act of 2000

1. Reasons for Various Changes

The House Ways and Means Committee Report indicates that H.R. 8 reflects the tax relief needed by all estates, heirs and businesses, including small and family-owned businesses and farms, from the "unduly burdensome" estate, gift and generation-skipping transfer taxes. The Committee Report refers to the Bill as "a prudent first step in reducing overall levels of Federal taxation" and notes that the estimated revenue effects of the Bill are in compliance with the most recent budget surplus projections of the Congressional Budget Office. 5

With respect to the generation-skipping transfer tax, the Committee Report indicates that automatic allocation of a person's generation-skipping transfer tax exemption is appropriate for trusts which are likely to have generation-skipping transfer tax consequences. The Committee notes that taxpayers sometimes inadvertently fail to make allocations to indirect generation-skipping transfers or they make defective elections. 6

In a similar vein, the Committee notes that it is appropriate to provide relief where a person's generation-skipping transfer tax exemption has not been allocated to a trust because the transferor did not expect an unnatural order of deaths in his or her family. In the event of such an unexpected and unnatural sequence of deaths (the example given is that the transferor's child predeceases the transferor), the Committee Report indicates that H.R. 8 would allow the transferor to allocate his or her exemption to the trust retroactively to the date of the transfer to the trust. 7

The Ways and Means Committee also discusses the appropriateness of simplifying other areas of the generation-skipping transfer tax, including making the complex rules regarding severance of trusts for purposes of obtaining optimal generation-skipping transfer tax inclusion ratios "less burdensome and less complex," clarifying the valuation rules that apply with respect to allocations of the generation-skipping transfer tax exemption, authorizing the Treasury Secretary to grant extensions of the time for allocating the exemption in situations where there has been an inadvertent failure to allocate and allowing an exemption allocation to be deemed effective where there has been substantial compliance. 8

Finally, the Committee states that expansion of the availability of the qualified conservation easement provisions is warranted because expansion would advance the preservation of environmentally sensitive land by reducing the current pressures to develop or sell such land to raise funds to pay estate taxes. In addition, the Committee Report mentions the appropriateness of clarifying the date for easement compliance determinations. 9

2. Background

A. Current Estate and Gift Tax Structure

Under current law, a unified rate schedule ranging from 18% to 55% applies to a person's lifetime gifts and his or her transfers at death on a cumulative basis. 10 The tax imposed on lifetime transfers is referred to as the gift tax and the tax imposed on death transfers is referred to as the estate tax. A living individual is allowed an exclusion of $10,000 per donee per year and only the transfers in excess of the annual exclusions are considered "taxable" transfers in any year. 11

The 18% rate applies to the first $10,000 in cumulative taxable transfers. Once cumulative taxable transfers reach $3 million, the rate is 55%. A 5% surtax applies to cumulative taxable transfers over $10 million until the benefits of the graduated rates are phased out at $17,184,000. 12

Current law provides for a unified credit (also known as the applicable credit amount) which exempts $675,000 of taxable transfers from estate and gift taxes. Application of the credit is mandatory so that no estate or gift taxes will actually be paid until the cumulative taxable transfers exceed the amount exempted by the credit. 13 The credit applies at the lowest rates so that taxable transfers are subject to rates beginning at 37% after the application of the credit. 14

The amount exempted by the credit is scheduled to increase to $700,000 in 2002, to $850,000 in 2004, to $950,000 in 2005 and finally to $1 million in 2006. 15 With proper estate planning, a married couple would be able to exempt $2 million starting in the year 2006 and a marital deduction would help postpone the estate tax until the death of the surviving spouse. 16 Deductions are also available for various other items, including certain administrative expenses, family owned business interests and charitable gifts. 17

The existing estate and gift tax charitable deductions have provided an avenue for persons with taxable estates in excess of the available exemption to reduce or eliminate estate and gift taxes by redirecting a portion of their wealth from the government to charitable organizations. Many see the high estate and gift tax rates as a major impetus for charitable gift planning.

B. Tax Basis Rules

When property is transferred by gift, the donee generally takes the donor's basis, commonly called a carryover basis, in the property. If the property is subsequently sold for an amount in excess of the carryover basis, the donee will realize gain. However, if the property is subsequently sold for less than the carryover basis, the donee will use the property's fair market value at the time of the gift to determine his or her loss. If gift taxes are paid on the transfer from the donor to the donee, the basis will be increased for the amount of the taxes. 18

When property is transferred at death, in most cases the recipient will take a basis equal to the fair market value of the property at the date of death. In other words, the recipient will not have to recognize gain on any appreciation in the property that occurred before the decedent's death and will not benefit from any loss in value that occurred before such time. If the decedent's estate makes an election to use the alternative valuation date, then the property transferred from that decedent will take a basis equal to the fair market value six months after the date of death or equal to the fair market value of the property on the date of sale if the property is sold prior to the six months' date. 19

C. Generation-Skipping Transfer Taxes

The generation-skipping transfer tax is imposed on lifetime or death transfers to skip persons. 20 A skip person is someone who is deemed to be in a generation two or more generations below the transferor's generation. 21 The generational status is determined by the relationship between most relatives (for example, a grandchild is a skip person with respect to a grandparent) and by the number of years in age between most non-relatives. 22 A trust is a skip person if all trust interests are held by skip persons or if no persons hold trust interests and at no time after the transfer may a distribution from the trust be made to a non-skip person. 23

A generation-skipping transfer may be direct or indirect and it may be outright or in trust. The types of transfers subject to the tax are referred to as direct skips, taxable terminations and taxable distributions. 24 In simple terms, a direct skip is a transfer to a skip person where the transfer is subject to the estate or gift tax. In some cases, a transfer to a trust may be a direct skip. The term taxable termination refers to a termination of a trust interest unless a non-skip person has an interest in the trust property after such termination or no distributions may be made to a skip person after such termination. The trust's termination may have resulted from death, lapse of time, release of a power, etc. The term taxable distribution refers to a distribution from a trust to a skip person where the distribution does not fall into the direct skip or taxable termination categories. 25

The generation-skipping transfer tax is imposed at a flat rate equal to the top estate and gift tax rate, which is currently 55%.26 This rate is multiplied by an inclusion ratio to determine the amount of generation-skipping transfer tax owed. The inclusion ratio is determined by the amount of generation-skipping transfer tax exemption allocated to the transfer. More specifically, the inclusion ratio is equal to one minus the applicable fraction. The numerator of the applicable fraction is essentially the amount of generation-skipping transfer tax exemption allocated to the property and the denominator of the applicable fraction is essentially the value of the property. 27 Each person has an exemption from the tax equal to $1,030,000 in 2000 and the exemption is indexed to increase for inflation. 28 The transferor may allocate the exemption to lifetime gifts by making an election on a gift tax return and the transferor's executor may allocate the exemption at death by making an election on an estate tax return. 29

It is desirable for a trust to have either an inclusion ratio of one or an inclusion ratio of zero. Current law provides that a trust may be split, or severed, into two or more trusts so that one trust will have an inclusion ratio of one and one trust will have an inclusion ratio of zero if certain rather complicated conditions are met. The trust may be severed if such severance is according to a direction in the trust's governing instrument. A trust may also be severed if the severance is pursuant to the trustee's discretionary powers either under the instrument or local law. However, in the latter case, the severance must occur or reformation proceedings must be started by specific dates. 30

Current law provides for the automatic allocation of a person's generation-skipping transfer tax exemption in certain cases. If the person makes a lifetime direct skip, his or her unused exemption is automatically allocated to the direct skip in an amount necessary to cause the inclusion ratio for the property to be zero (to the extent there is sufficient unused exemption) unless the person elects out of the automatic allocation on his or her gift tax return. 31

If a person makes lifetime generation-skipping transfers that are taxable terminations or taxable distributions, he or she must affirmatively allocate exemption to these transfers on a timely gift tax return if he or she wants the exempted amount to be based upon the value of the property on the date of the transfer. 32 If a late allocation is made, the amount exempted is based on the value of the property at the date of the allocation. Any unused exemption available at the person's death will be automatically allocated on the due date for filing the person's federal estate tax return. The exemption will first be allocated pro-rata based on the values finally determined for estate tax purposes to direct skips deemed to occur on the date of death. Any leftover exemption will then be allocated pro-rata to the non-exempt portions of any trusts that may result in taxable terminations or taxable distributions. The allocation to these trusts is based on the estate tax value for trusts included in the gross estate and on the date of death value for trusts not included in the gross estate. In lieu of relying on these automatic allocations, the decedent's executor may make allocations of the decedent's available exemption on the decedent's estate tax return. 33

The current Regulations also provide that the inclusion ratio for determining the generation-skipping transfer tax applicable to taxable terminations and taxable distributions becomes final on the expiration of the period for assessing the tax with respect to the first transfer using the inclusion ratio or the expiration of the period for assessing the estate tax on the transferor's estate, if later. 34

As indicated above, the House Ways and Means Committee noted that people are unlikely to make allocations of generation-skipping transfer tax exemption to trusts when they expect that the trusts will benefit only non-skip persons. However, if a non-skip beneficiary such as a child dies, unexpectedly causing a skip person such as a grandchild to become beneficiary of the trust and this change is a taxable termination, the Committee Report notes that this will cause a generation-skipping transfer tax to be due under current law even if the transferor had available exemption. Further, as the Committee notes, current law provides no statutory relief for people who have substantially complied with the generation-skipping transfer tax exemption allocation rules. 35

D. Qualified Conservation Easements

If a taxable estate includes land subject to a qualified conservation easement, the executor can make an election to exclude 40% of the value of such land. In 2000, the maximum amount that may be excluded is $300,000. The maximum goes up to $400,000 in 2001 and then to $500,000 in 2002. 36 Two percentage points must be deducted from the 40% exclusion percentage for each whole or fractional percentage point by which the qualified conservation easement value is less than 30% of the land value. The value of the easement is not taken into account in valuing the land and the value of any retained development rights must be subtracted. 37

For an easement to qualify under this provision, current law provides that the land subject to the easement must either be within 25 miles of a metropolitan area as defined by the Office of Management and Budget, within 25 miles of a national park or a wilderness area or within 10 miles of an Urban National Forest as designated by the United States Department of Agriculture or the Forest Service. In addition, the land subject to the easement must have been owned by the decedent or a family member of the decedent at all times for the 3 years prior to the decedent's death. The decedent or a member of his or her family must have made a qualified conservation contribution as defined in Code38 Section 170(h) of a qualified real property interest as defined in Code Section 170(h)(2)(C) and historical preservation of land or a building will not qualify as a conservation purpose. 39

The qualifying conservation easement must be granted no later than the date of the estate's election for the exclusion. The decedent, his or her family member, his or her executor or the trustee of a trust that holds the land can make the easement grant. The land excluded from the taxable estate will take a carryover rather than a fair market value basis. If the land was acquired with debt, only the net equity will be eligible for the exclusion. 40

3. Proposed Changes by H.R. 8

A. Repeal of Transfer Taxes and Imposition of Carryover Basis

H.R. 8 provides for the repeal of the estate, gift and generation-skipping transfer taxes beginning in the year 2010. At that time, assets transferred from a decedent would generally take a carryover basis rather than a fair market value basis. A couple of exceptions to this new carryover basis rule would apply. First, $1.3 million of assets would take a fair market value basis regardless of the identity of the recipients. Second, an additional $3 million of assets would take a fair market value basis if transferred to the decedent's spouse. The decedent's executor could elect which assets would have the stepped up basis. These amounts of $1.3 million and $3 million would be adjusted for inflation on an annual basis beginning in 2011. 41

B. Phased-In Rate Reductions

The applicable rates for the estate, gift and generation-skipping transfer taxes would be reduced in the years prior to their repeal. In 2001, the top rate (55%) and the 5% surtax would be eliminated. As a result, the top rate would be 53%. In 2002, the 53% rate would be eliminated with the result that the top rate would be 50%. Each rate on the estate and gift tax rate schedule would be reduced by 1% each year in 2003, 2004, 2005 and 2006. A 1.5% reduction would apply to each rate in 2007. A 2% reduction would apply to each rate in 2008 and 2009. However, the lowest estate and gift tax rate would not be less than the lowest individual income tax rate for unmarried individuals other than heads of households or surviving spouses and the highest estate and gift tax would not be lower than the highest individual income tax rate for such unmarried persons. As under current law, the highest estate and gift tax rate in effect in a year is the rate applicable for generation-skipping transfers for that year. Starting in 2003, the rates for the state death tax credit would be reduced each year in proportion to the reduction in the transfer tax rates. 42

C. Unified Exemption Amount

After 2000, the current unified credit (also known as the applicable credit amount) would become a unified exemption amount. The amount exempted in years 2001 through 2009 would be the same as the amount currently exempted by the credit. That is, $675,000 would be exempted in 2001, $700,000 would be exempted in 2002 and 2003, $850,000 would be exempted in 2004, $950,000 would be exempted in 2005 and $1 million would be exempted in 2006, 2007, 2008 and 2009. An exemption equal to the larger of $60,000 or that portion of $175,000 which the value of United States' situs property bears to non-United States' situs property would be available for decedents who are non-resident aliens. 43

D. Automatic Allocation of Generation-Skipping Transfer Tax Exemption

Code Section 2632 would be modified to provide for an automatic allocation of a person's generation-skipping transfer tax exemption to certain inter vivos transfers to trusts that could result in taxable terminations and taxable distributions. The House Ways and Means Committee Report refers to such transfers as indirect skips and defines indirect skips as transfers that are not direct skips, that are subject to a gift tax and that are made to a generation-skipping transfer trust. A generation-skipping transfer trust is defined as any trust from which a taxable termination could occur or a taxable distribution could be made with respect to the transferor. The Committee Report lists a number of trusts that would be excepted from the definition of generation-skipping transfer trust, as follows:

The trust instrument provides that more than 25 percent of the trust corpus must be distributed to or may be withdrawn by 1 or more individuals who are non-skip persons (a) before the date that the individual attains age 46, (b) on or before 1 or more dates specified in the trust instrument that will occur before the date that such individual attains age 46, or (c) upon the occurrence of an event that, in accordance with regulations prescribed by the Treasury Secretary, may reasonably be expected to occur before the date that such individual attains age 46;

The trust instrument provides that more than 25 percent of the trust corpus must be distributed to or may be withdrawn by 1 or more individuals who are non-skip persons and who are living on the date of death of another person identified in the instrument (by name or by class) who is more than 10 years older than such individuals;

The trust instrument provides that, if 1 or more individuals who are non-skip persons die on or before a date or event described in clause (1) or (2), more than 25 percent of the trust corpus either must be distributed to the estate or estates of 1 or more of such individuals or is subject to a general power of appointment exercisable by 1 or more of such individuals;

The trust is a trust any portion of which would be included in the gross estate of a non-skip person (other than the transferor) if such person died immediately after the transfer;

The trust is a charitable lead annuity trust or a charitable remainder annuity trust or a charitable unitrust; or

The trust is a trust with respect to which a deduction was allowed under section 2522 for the amount of an interest in the form of the right to receive annual payments of a fixed percentage of the net fair market value of the trust property (determined yearly) and which is required to pay principal to a non-skip person if such person is alive when the yearly payments for which the deduction was allowed terminate. 44

Essentially, H.R. 8 would provide that for lifetime indirect skips, the transferor's unused generation-skipping transfer tax exemption would be allocated to the generation-skipping transfer trust in an amount necessary to produce the lowest inclusion ratio that is possible. The transferor can elect out of this automatic allocation rule on a timely-filed gift tax return. The Treasury Secretary would be authorized to provide for electing out at a later time or times, also. The election out could apply to any or all transfers by the transferor to a particular trust. In addition, the transferor could elect to treat any trust as a generation-skipping transfer trust for purposes of any or all of the transfers he or she makes to that trust. These latter elections would also be made on a timely-filed gift tax return for the year in which the election is to be effective. 45

These automatic allocation rules would apply to gift and estate tax transfers made after December 31, 1999, and to estate tax inclusion periods that end after that date. 46

E. Retroactive Allocation of Generation-Skipping Transfer Tax Exemption

H.R. 8 would allow the retroactive allocation of generation-skipping transfer tax exemption to a trust when there is an unnatural order of deaths. That is, if one of the transferor's lineal descendants dies before the transferor, the transferor could allocate his or her available generation-skipping transfer tax exemption to any prior transfer(s) made to a trust. The allocations would be made on a chronological basis. The allocations would apply retroactively to the date of the transfers if a trust beneficiary is a non-skip person who is in the generation directly below the transferor and is a lineal descendant of a grandparent of either the transferor or the transferor's spouse. This beneficiary must predecease the transferor. Retroactive allocation means that the values used for the inclusion ratio and applicable fraction would be based upon the property values on the date of transfer to the trust. This provision would apply for deaths of non-skip persons occurring after 1999. 47

F. Severance of Trusts for Generation-Skipping Transfer Tax Exemption Purposes

The proposal would modify Code Section 2642 to simplify the severance of trusts for generation-skipping transfer tax exemption purposes. A trustee would be allowed to make a qualified severance of a trust at any time, effective for severances beginning on January 1, 2000. A qualified severance would be the division of one trust into two or more trusts if the trust is divided on a fractional basis and the succession of beneficial interests in the new trusts is the same in the aggregate as in the original trust. Where the inclusion ratio for a trust is neither zero nor one, a severance of the trust will be qualified if two trusts are created and one trust receives a fractional share of the total trust assets equal in value to the original trust's applicable fraction right before the severance. The trust receiving this fractional amount will have an inclusion ratio of zero and the other trust will have an inclusion ratio of one. 48

G. Clarification of Valuation Rules for Generation-Skipping Transfer Tax Exemption Purposes

Code Section 2642 would be amended to clarify the valuation rules for allocations of generation-skipping transfer tax exemptions made on a timely or automatic basis, effective for estate and gift tax transfers beginning January 1, 2000. Specifically, the value of the property used in determining the inclusion ratio would be its value as finally determined for either gift or estate tax purposes, depending on the circumstances of the transfer. If the transfer is treated as made at the end of an estate tax inclusion period, the value of the property at that time would be used. 49

H. Relief for Late Allocation of Generation-Skipping Transfer Tax Exemption

Relief would be provided under Code Section 2642 for late allocations of the generation-skipping transfer tax exemption effective for requests pending on or filed after the end of 1999. The law would authorize and direct the Treasury Secretary to give extensions of time for allocating the generation-skipping transfer tax exemption and to make exceptions to the time requirement. If an extension is applicable, the exemption allocation would be based on the value of the property on the date of transfer. The Committee Report states that the Secretary would be "directed to consider all relevant circumstances, including evidence of intent contained in the trust instrument or instrument of transfer and such other factors as the Treasury Secretary deems relevant. For purposes of determining whether to grant relief, the time for making the allocation (or election) is treated as if not expressly prescribed by statute." The Bill would not interfere with any relief available for late elections before the effective date of this provision. 50

I. Relief for Substantial Compliance with Generation-Skipping Transfer Tax Allocation Rules

Code Section 2642 would also be amended to provide relief to taxpayers who have substantially complied with the rules for allocating generation-skipping transfer tax exemption. Again, this provision would apply to estate and gift tax transfers made beginning on January 1, 2000, and it would not interfere with any relief available before that date. Substantial compliance would be adequate for making an effective allocation of the exemption to a particular trust transfer. When a transferor demonstrates that substantial compliance exists, there would be a deemed allocation of his or her available exemption in an amount necessary to produce the lowest inclusion ratio possible. The Committee Report states that all relevant circumstances would be considered in deciding whether there has been substantial compliance. The relevant circumstances would include evidence of the transferor's intent found in the trust or transfer instrument and other factors that the Treasury Secretary "deems appropriate." 51

J. Expanded Availability of Qualified Conservation Easements

Finally, H.R. 8 would modify the distance provisions applicable to qualified conservation easements. For the estate tax exclusion to be available, the land would have to be located 50 miles (rather than 25 miles) from a metropolitan area, wilderness area or national park. Alternatively, the land could be located 25 miles (rather than 10 miles) from an Urban National Forest. In addition, easement compliance would be determined on the date of the contribution. The provision modifying the distance requirements would be effective for decedents dying after December 31, 1999, while the provision clarifying the date of compliance would be effective for decedents dying after December 31, 1997. 52

4. Budgetary Effects

The Report of the House Ways and Means Committee includes estimates of the effect that H.R. 8 would have on the federal budget. A chart is included showing the estimated impact of the Bill for fiscal years 2000 through 2005. The Report states that the Joint Committee on Taxation estimates that H.R. 8 "would reduce revenues by $8 billion in fiscal year 2001, by $28 billion over the 2001-2005 period, and by $105 billion over the 2001- 2010 period." 53

Conclusion

H.R. 8, the Death Tax Elimination Act of 2000, is very similar to the legislation to eliminate the estate, gift and generation-skipping transfer taxes that Congress passed in 1999. H.R. 8 provides for the gradual reduction of the transfer tax rates with the ultimate repeal of the transfer taxes in 2010. For the period before repeal, the Bill includes provisions relieving taxpayers of some of the more complicated compliance rules applicable to the generation-skipping transfer tax. The Bill also increases the potential availability of the qualified conservation easement exclusion.

As was the case with the 1999 legislation, it is expected that President Clinton will veto H.R. 8 once it gets to him. However, bipartisan support for this or similar legislation has increased and the issue of death tax repeal appears to have grown in importance in many taxpayers' minds in recent months. The Republican Party has made death tax repeal part of its campaign platform. In short, the possibility of legislation similar to H.R. 8 being passed into law is extremely high if the Republicans win the Presidency and maintain control of both the House and Senate.

What would such dramatic changes in the tax code mean for charities? Would charitable contributions go down drastically? Would donors stop making planned gifts? No one knows for certain what the answers to these questions would be, but the next installment of this article will examine both sides of the debate on the impact that such legislation would have on charitable contributions and planned giving.

Click here for Part II


Footnotes


  1. H.R. 8, 106th Cong., 2d Sess. (2000) and H. Rept. No. 106-651, 106th Cong., 2d Sess. (2000).back

  2. See 2000 TNT 137-3.back

  3. See 2000 TNT 146-39.back

  4. See, e.g., CCH 2000TAXDAY, Item No. C.2 (July 18, 2000) (Quoting the remarks made by House Majority Leader Richard K. Armey, R-Tex., during the CNN program, "Late Edition," on July 16, 2000, after noting that President Clinton has stated his plan to veto H.R. 8: "We would have the votes to override his veto in the House of Representatives; I'm not sure they would have them in the Senate. Nevertheless, Congress is committed to eliminating estate taxes. It's just wrong to steal a family's lifetime of earnings and accumulation away from their children. So if the president does veto it ... then we would bring it up again in the next session.").back

  5. H. Rept. No. 106-651, 106th Cong., 2d Sess. (2000).back

  6. Id.back

  7. Id.back

  8. Id.back

  9. Id.back

  10. See I.R.C. § 2001.back

  11. See I.R.C. § 2503.back

  12. See I.R.C. § 2001.back

  13. See I.R.C. § 2010.back

  14. See, e.g., H. Rept. No. 106-651, 106th Cong., 2d Sess. (2000).back

  15. See I.R.C. § 2010.back

  16. See I.R.C. §§ 2056 and 2523.back

  17. See I.R.C. §§ 2053, 2057, 2055 and 2522.back

  18. See I.R.C. § 1015.back

  19. See I.R.C. § 1014.back

  20. See I.R.C. § 2601.back

  21. See I.R.C. § 2613.back

  22. See I.R.C. § 2651.back

  23. See I.R.C. § 2613.back

  24. See I.R.C. § 2611.back

  25. See I.R.C. § 2612.back

  26. See I.R.C. § 2641.back

  27. See I.R.C. § 2642.back

  28. See I.R.C. § 2631 and Rev. Proc. 99-42, I.R.B. 1999-46.back

  29. See I.R.C. § 2632 and Treas. Reg. § 26.2632-1.back

  30. See I.R.C. § 2654 and Treas. Reg. § 26.2654-1.back

  31. See I.R.C. § 2632 and Treas. Reg. § 26.2632-1.back

  32. Id.back

  33. Treas. Reg. § 26.2632-1(d).back

  34. Treas. Reg. § 26.2642-5(b).back

  35. H. Rept. No. 106-651, 106th Cong., 2d Sess. (2000).back

  36. I.R.C. § 2031(c).back

  37. See id.back

  38. All references to the Code are to the Internal Revenue Code of 1986, as amended from time to time.back

  39. Id.back

  40. See I.R.C. §§ 2031(c) and 1014.back

  41. H. Rept. No. 106-651, 106th Cong., 2d Sess. (2000).back

  42. Id.back

  43. Id.back

  44. Id.back

  45. Id.back

  46. Id.back

  47. Id.back

  48. Id.back

  49. Id.back

  50. Id.back

  51. Id.back

  52. Id.back

  53. Id.back

Add comment

Login or register to post comments

Comments

Group details

Follow

RSS

This group offers an RSS feed.
 
7520 Rates: December 26% November 2.4% October 2.2%

Already a member?

Learn, Share, Gain Insight, Connect, Advance

Join Today For Free!

Join the PGDC community and…

  • Learn through thousands of pages of content, newsletters and forums
  • Share by commenting on and rating content, answering questions in the forums, and writing
  • Gain insight into other disciplines in the field
  • Connect – Interact – Grow
  • Opt-in to Include your profile in our searchable national directory. By default, your identity is protected

…Market yourself to a growing industry