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Decision Criteria for Gifts Under the 1976 Tax Reform Act

The 1976 Tax Reform Act made many changes in the taxation of estate and gift transfers. Previously gifts and estates were taxed separately and the gift tax rate was 75 percent of the estate tax rate; and there was a $30,000 exemption for gifts and a $60,000 exemption for estate transfers. Under the new law the exemptions were repealed and replaced with a unified credit against the tax; and the tax on estate and gift transfers was combined into one increasing rate schedule. Under the prior law, deathbed gifts were advantageous because the gift tax paid on the transfer was excluded from the taxable estate but was allowed as a credit against the estate tax since gifts within three years of the date of death were included in the gross estate unless the estate could demonstrate that the gifts were not made in contemplation of death. Under the new law, gift taxes paid on transfers which occur within three years of the date of death are included in the taxable estate.

Identiferoai:union.ndltd.org:unt.edu/info:ark/67531/metadc331334
Date12 1900
CreatorsByars, Richard B.
ContributorsAnderson, Hershel M., Christy, George A., Giese, James W.
PublisherNorth Texas State University
Source SetsUniversity of North Texas
LanguageEnglish
Detected LanguageEnglish
TypeThesis or Dissertation
Formativ, 88 leaves, Text
CoverageUnited States
RightsPublic, Byars, Richard B., Copyright, Copyright is held by the author, unless otherwise noted. All rights reserved.

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