The second thing is that the federal estate tax is unified with the federal gift tax. That means that – at death - you have to add all your reportable lifetime gifts to your net worth (at death) to determine whether an estate return is required. As an easy example, say that you gift $5,400,000 over your lifetime, and you pass away single and with a net worth of $1 million.
- The taxpayer did not give the legal names of the partnerships.
- The taxpayer gave an incorrect identification number for one partnership.
- The taxpayer gifted partnership interests, requiring a valuation. The taxpayer got an appraisal on the land, but did not get a valuation on the partnership containing the land.
- Failure to get a valuation on the partnership also meant the taxpayer failed to document any discounts claimed on the partnership interest.
The Service may assess gift tax based upon those transfers at any time.”
Q: What is my takeaway from all this?