Question
Describe two ways in which the transfer tax (estate and gift tax) system is a unified system. A. (1) Both taxes have a unified credit
Describe two ways in which the transfer tax (estate and gift tax) system is a unified system.
A. (1) Both taxes have a unified credit amount of $345,800, and (2) the same tax rates apply for both gift and estate tax purposes.
B. (1) If gifts are made in the year estate tax applies, the gifts are pulled into the estate, and (2) they have the same maximum credit amount in 2010 or later.
C.(1) If gifts are made in the year estate tax applies, the gifts are pulled into the estate, and (2) both taxes have a unified credit amount of $345,800.
D.(1) The same tax rates apply for both gift and estate tax purposes, and (2) they are combined into one maximum credit amount in 2011 or later.
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