FIN 440 Lecture Notes - Lecture 6: Community Property, One-Party State, Tax Bracket
Document Summary
All individuals may gift of to ,000 (2016) tax free per donee each year (adjusted for inflation) Non-us citizen spouses: super annual exclusion = ,000 (2016) Married spouses can elect to split gifts effectively doubling the annual exclusion per donee to. Must be elected for all gifts made by both spouses while married for that year. Only count for the time during which a couple was married. No gift-splitting for community property (no returns needed) Each person also had one lifetime credit equivalency amount up to . 43 mil for 2015 and . 45 mil for 2016: 2015 numbers = credit against tax of ,117,800, 2016 numbers = credit against tax of ,125,800. See gift and estate tax credit chart in text for historical credit amounts: exhibit 5. 6. Present: unrestricted right to the immediate use of the property. There must be immediate use, possession or enjoyment of the property for it to be of a present interest.
