Video: Gift Tax and Estates Overview

In this lesson, grab a front-row seat as Nick Palazzolo, CPA, unpacks the intricate details surrounding the federal gift tax and estate taxation. He dives into the calculations that come into play and the important scenarios that often crop up in this area, making sure to clarify the federal gift tax exclusion—a critical piece of information that changes annually. You'll explore a myriad of topics including the classification of gifts, allowable deductions, exclusions, gift splitting, and the impact of the lifetime exclusion. Moreover, Nick doesn't shy away from crunching numbers with practical examples, guiding you through the computation of taxable gifts and breaking down what assets make up a decedent's gross estate. Estate tax deductions and calculating the taxable estate are all on the table in this comprehensive lesson. Ready to demystify the rules and regs of wealth transfer taxes? Let's jump in!

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Welcome to our lesson on gift tax in estates. We're gonna see a lot of great, heavily tested material here. Not so much for estates, but more so for gift tax. Let's dive right into our learning objectives. Gonna be a little more calculation heavy here, as well as analyzing and assessing scenarios. First off, we wanna understand that transfers of property may be subject to federal gift tax. There is a lot when it comes to trusts, estates, gift tax, and just inheritance. There's a lot of transfers of wealth that are heavily taxed by the IRS. We're gonna see those and examples of them. We wanna calculate the amount and the classification of a gift for federal gift tax purposes, and identify any gifts that would be subject to federal gift tax. Just as a note, there is a federal gift tax exclusion, which you see in point three, that is gonna change year to year. That will be in the resources provided. Please make sure you memorize that current amount. We will use examples that have example limitations. However, those are examples. We want you to memorize the amount that will be on the exam for the particular year that you're taking it. Again, here, point three, we wanna recognize allowable gift tax deductions, exclusions, and special situations. We'll talk about all of those, including the annual exclusion, gift splitting, and impact of the lifetime exclusion amount. We'll see what that is. We wanna compute the amount of taxable gifts for federal gift tax purposes. What would a section be without any sort of calculations? We wanna identify assets includable in the decedent's gross estate for federal estate tax purposes. Estates used to be much more heavily tested, just like trusts, but they're still there, so we

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Trusts, Estates, Gift Tax, & Tax-Exempt Organizations

Module: 4 Concepts, 35 Videos

Gift Tax and Estates Overview

1:49

Introduction to Gift Tax and Estates

1:52

General Points Regarding Gift Tax

8:57

Complete and Incomplete Gifts