If the basis in an asset is low relative to its current market value, why might bequeathing the asset be more efficient than giving it as a gift? Under what conditions will the gift route be preferred?
Answer to relevant QuestionsWhy is tax minimization different from efficient tax planning? We generally think that taxes lower returns, which means that after tax returns are lower than pretax returns. Is this always true, or can you provide counterexamples? What nontax considerations might you consider in designing a tax efficient compensation contract for the CEO? How do such judicial doctrines as the economic substance, substance over form, and business purpose doctrines affect taxpayer behavior? Is it socially beneficial to have such doctrines? Apart from the exclusion equivalent, should tax planners recommend that all estate assets be transferred to the surviving spouse, if the goal is to transfer resources to successive generations? What nontax issues arise in ...
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