effectively is required to recognize a portion of the built-in gain in the Sec.
The starting point when calculating the TPT credit is determining whether the transferor
has "transferred" to the transferee any "property" included in the transferor
's gross estate (transferred property).
The beneficiary receives the property at the transferor
's death, but if the beneficiary does not survive the transferor
, the beneficiary's interest in the property lapses.
Finally, the assets returned to the transferor
at the settlement date do not have to be the same assets that were originally transferred.
368 reorganizations) as either the corporation that ultimately acquired all the assets the transferor
corporation transferred or the corporation that directly acquired the assets the transferor
corporation transferred, if no single corporation ultimately acquired all the assets transferred in the transaction.
should report a liability for the present value of any significant obligation to sacrifice financial resources that meets either of the following criteria:
In general, it is a transfer to a person two or more generations younger than the transferor
(called a "skip person"; see Q 953 regarding generation assignments), and can take any one of three forms: (1) a taxable distribution, (2) a taxable termination, and (3) a direct skip.
For the statute to apply: (1) the transfer must be to the transferor
's spouse, lineal descendants of the transferor
or the transferor
's spouse, and the spouses of such descendants; and (2) the transferor
and applicable family members immediately before the transfer must "control" the entity by owning, by vote or value, 50 percent of the stock.
For purposes of determining the inclusion ratio, every individual is allowed a GST exemption of $3,500,000 (in 2009, see Appendix B) which may be allocated irrevocably by him (or his executor) to any property with respect to which he is the transferor
The court ruled that a taxable transfer under the real estate transfer tax must include a bargained-for exchange of promises between the transferor
and transferee, with the transferor
receiving some benefit or consideration in exchange for the transfer of real estate.
In addition, if the transferor
continues to live in the home, a liability exposure to that individual still exists.
A 50 per cent reduction in value applies to: quoted voting shares in or securities of a company controlled by the transferor
; any land or buildings, machinery or plant owned by the transferor
and used mainly for business by a company controlled by the transferor
or by a partnership; or certain settled property.
Remember that Qualifying Special-Purpose Entities (QSPEs) do not get consolidated by the transferor
even if the so-called equity class is wholly-owned by the transferor
Compliance with original UCC Article 6 became extremely burdensome, especially if the transferor
had many creditors.
84) The latter provision generally applies if the basis of the property in the hands of the transferee is determined by reference to its basis in the hands of the transferor
by reason of sections 332,351,361, 721 or 731.