G.57 Gift, estate, and GST tax compliance and calculation Flashcards

The amount an individual can give to another person each year without incurring gift tax or using their lifetime exemption; for 2024, this amount is $18,000 per recipient.

The total amount an individual can transfer during their lifetime or at death without being subject to federal gift or estate tax; for 2024, this amount is $13.61 million per individual.

A tax imposed on transfers of assets to individuals who are at least two generations younger than the donor, such as grandchildren, to prevent tax avoidance.

The adjustment of an inherited asset’s cost basis to its fair market value at the date of the decedent’s death, reducing potential capital gains tax upon sale.

A provision allowing a surviving spouse to use the unused portion of a deceased spouse’s federal estate tax exemption, effectively increasing their exemption amount.

Gifts exceeding the annual exclusion that require filing IRS Form 709 and may reduce the donor’s lifetime exemption.

An unlimited deduction available for bequests made to qualified charitable organizations, reducing the taxable estate.

The combined system for taxing both lifetime gifts and estate transfers, using a single progressive tax rate schedule and a shared exemption.

The IRS form required for reporting and calculating estate taxes due for estates exceeding the federal exemption threshold.