Understanding the Federal Gift Tax: 2021 Edition (LISI e-Book)

Overview

Nationally recognized author and transfer tax expert Steve Siegel just released his new eBook. It’s is set up in outline format which makes it much easier to find what you’re looking for and help you see the relationship of each subtopic to those above and below it. Also, the citations are there where you want them rather than as foot or endnotes.

Steve provides numerous examples and notes that provide even more insight into nuances and “planning points” that make it easier for the reader to grasp the concepts as they are presented. Problems a practitioner is likely to meet are addressed and followed with workable solutions.

The extensive exhibits contains numerous sample documents that can be used without much additional work to make, document, and report gifts. An example is a specimen form for a gift of an LLC interest to a grantor retained annuity trust (GRAT) as well as sample language for 709 filings.

As you’ll see by the outline, Steve Siegel has not only a great grasp of the subject but an incredible ability to make the complex understandable and relatable to real life problems.

Table of Contents

• Transfers subject to the gift tax
  • Nature of the tax: Persons subject to the tax
  • Definition of gift
    • What is a taxable gift?
• Transfers that are not subject to the gift tax
  • Transfers to political organizations
  • Transfers for certain educational expenses
  • Transfers for certain medical expenses
  • Loans of certain artwork
  • Waiver of certain pension rights
• Exclusions from the gift tax
  • The annual exclusion
  • Gifts of present interests and future interests
  • The lifetime gift tax exclusion

• Gift-splitting by spouses
  • Overview: Relation to annual exclusion and lifetime exclusion gifts
  • Requirements to be satisfied to utilize gift-splitting
  • Planning considerations if the exclusion will be reduced
• Available gift tax deductions
  • The gift tax marital deduction – general rules and availability
  • The gift tax marital deduction – nondeductible terminable interests and the applicable exceptions
  • The gift tax charitable deduction
• Valuation of gifts
  • General rules
  • Valuation of publicly traded securities
  • Valuation of gifts in closely held businesses
  • Valuation discounts: A key to transfer planning
  • Planning suggestion: Use minority interest discounts for 100% of the value of the business
  • Valuation disputes continue
  • Valuation of life insurance policies
  • Valuation of annuities, life estates and similar interests
  • Valuation of interest-free or below market interest rate loans
  • The special valuation rules of Chapter 14 of the Code (2701-2704)
  • Valuation of gifts encumbered by obligations
  • Net gifts
  • Penalties for incorrect valuations
• Avoiding gift treatment through the use of disclaimers
  • What is a disclaimer
  • Requirements for a qualified disclaimer
  • Interests in jointly-held property may be disclaimed by the surviving joint tenant
  • Who can disclaim?
• Special rules and situations involving gift transactions
  • Transfers by power of attorney
  • Gifts of checks
  • Notes and guarantees
  • Transfers in contemplation of marriage
  • Transfers of property in connection with divorces
  • Transfers creating joint property interests
• Statutes of limitations on gift tax valuation and assessment—The adequate disclosure rules
  • Introduction
  • Gifts made after August 5, 1997
  • Disclosure requirements
  • Adequate disclosure of non-gift transfers
  • Disclosure statements to avoid penalties Forms 8275, 8275R
  • Audit risk and information required
• Preparation of the federal gift tax return
  • The gift tax return form
  • Who Is required to file a gift tax return: Reported?
  • When Form 709 is filed
  • Amended gift tax returns
  • Where to file
  • Preparation of Form 709
• Exhibit A: IRS audit request letter
• Exhibit B: Sample description: Gift of LLC interest to grantor retained annuity trust (GRAT)
• Exhibit C: Gift to a qualified personal residence trust (QPRT)
• Exhibit D: Cash gift to a trust that contains Crummey withdrawal rights
• Exhibit E: Cash gift to a Section 529 Plan to utilize future annual exclusion gifts
• Exhibit F: Reporting a generation-skipping transfer allocation at the close of the estate tax inclusion period (ETIP)

Registration Fee: $179

Author: Steven Siegel