Gift Tax | Corporate Income Tax Course | CPA Exam FAR

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  • เผยแพร่เมื่อ 12 ธ.ค. 2024

ความคิดเห็น • 5

  • @smitaaay
    @smitaaay 3 ปีที่แล้ว +2

    At 11:06, I have to believe the book's equation is incorrect.
    If I give $10,015,000 to Mr. Farhat this year, then according to that equation, after I take the $15,000 annual exclusion off of there, I have a taxable gift of $10,000,000 for this year that I have to claim.
    Then it says I take 40% of that taxable gift of $10,000,000 which comes up to $4,000,000 in tax that I owe.
    Then it says I take the Unified Tax Credit and subtract it from this year's gift tax, which is $4,000,000. That is not, as far as I can read in the entire rest of this chapter, how that Unified Tax Credit works.
    That would allow me to give Mr. Farhat $29,250,000 ($11,700,000 / .4) over our lifetime without paying the Gift Tax on it, which is absolutely NOT what I'm allowed to do. I can give Mr. Farhat $11,700,000 (as of 2021) over our lifetime and not pay taxes on it. That Unified Tax Credit in the book's equation should be subtracted from the Taxable Gift Amount ($10,000,000 in my example) and NOT from the year's Gift Tax of $4,000,000.
    That book still has that equation like that in the one I'm using in 2021, but example after example throughout the book has that wrong, and Mr. Farhat works other examples showing it my way.

    • @antonmursid3505
      @antonmursid3505 2 ปีที่แล้ว +2

      Antonmursid🙏🙏🙏🙏🙏✌👌💝🇸🇬🇸🇬🇸🇬🇸🇬🇸🇬✌👌💝

  • @nileshgupta512
    @nileshgupta512 4 ปีที่แล้ว

    If a C Corporation gives away any property to any other corporation or any individual then would this Gift Tax be applicable on that Corporation?

    • @riyaziaf
      @riyaziaf 4 ปีที่แล้ว

      Even if C corportions gives u gift. It will be taxed to you. In the eyes of IRS, anything given by corps if it is greater than a nominal amount (i think its $25) will be included in gross income and is taxable.

    • @riyaziaf
      @riyaziaf 4 ปีที่แล้ว

      Corporations like C Corp, S Corp, partnerships, estates or trusts dont pay gift tax.