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AMBRECHT & BRITTAIN, LLPNew Estate and Gift Tax Developments following the1997 Tax Law |
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Gift Taxes. Internal Revenue Coe section 2001(f)(2) is amended to provides that the value of an item on a gift tax return is treatedas shown on the gift tax return if the item is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the IRS of the nature of the item. Note that this means that disclosure may be made on a statement attached to the gift tax return for all gifts shown on the return -- not only gifts subject to the Chapter 14 valuation rules. The rules for revaluation of prior transfers for estate and gift tax computation purposes are clarified with this Act to provide that the value of a prior transfer cannot be redetermined after the period of limitations if the transfer was disclosed in a statement attached to the gift tax return, as well as on a gift tax return, in a manner to adequately apprise the IRS of the nature of the transfer, even if there was no gift tax imposed on the transfer. (Effective for gifts made after August 5, 1997.) Family Business Exclusion: The provisions of the qualified family owned business exclusion (QFOBI) have been modified by the IRS Restructuring and Reform Act of 1998. Code section 2033A has been redesignated as Code section 2057. Conservation Easement: The IRS Restructuring and Reform Act of 1998 also clarified the conservation easement provisions. A gift of an easement may be made after death, but the deduction may only be taken on the estate tax return (not the income tax return). See also our Summary of the Economic Growth and Tax Relief Reconciliation Actof 2001, as well as our improved Excel spreadsheet (.xls)) showing various inflation adjustments from the 1997 and 2001 Tax Acts pertaining to estate and gift taxes. Click here for the same information as an Adobe (.pdf) file. (Data current as of July, 2002.)
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