Question

In: Accounting

The inclusion ratio is a means of reducing the applicable taxes on a given transfer.

The inclusion ratio is a means of reducing the applicable taxes on a given transfer. The inclusion ratio is found by subtracting the applicable fraction from the number 1. The denominator of the applicable fraction is the value of the property transferred less which of the following? 

a. The applicable credit amount. 

b. The federal estate tax recovered from the trust attributable to the property. 

c. The nonqualified medical or tuition transfer. 

d. The state inheritance tax paid by the beneficiary for the property.

Solutions

Expert Solution

Answer: Option "B" is correct.

The federal estate tax recovered from the trust attributable to the property.

The denominator of the applicable fraction is the value of the property transferred less:

  • Any federal estate tax and any state death tax incurred by reason of the transfer that is chargeable to trust and is recovered from the trust.
  • The amount of any charitable deduction allowed under section 2055, 2106 or 2522

ekkarill92 answered 1 year ago
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