Compare the credits available for estate tax purposes with the credits available for gift tax purposes. What differences exist?
What will be an ideal response?
The four credits available for estate tax purposes and illustrations of each are as follows:
• Gift tax credit — prior to 1977, the decedent made a gift of a remainder interest in property in which he kept a life estate and paid gift tax. The gifted property is in the donor's gross estate.
• Previously taxed property credit — the decedent received property that was taxed in the estate of a person who predeceased the decedent by not more than ten years.
• Foreign death tax credit — the decedent owned real property in a foreign country and paid death taxes to that country.
• Unified credit — $11,200,000 for 2018 for estate tax and gift tax purposes.
The only credit available for gift tax purposes is the unified credit.
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What will be an ideal response?
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A) unqualified opinion B) actual fraud C) disclaimer of opinion D) constructive fraud
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