Source: http://www.lexisnexis.com/legalnewsroom/tax-law/b/taxguidanceessentials/archive/2011/05/31/portability-of-unused-estate-and-gift-tax-exemption-between-spouses.aspx
Timestamp: 2013-12-07 23:01:45
Document Index: 405296746

Matched Legal Cases: ['§ 303', '§ 2505', '§2010', '§2505', '§2010', '§ 303']

04:20 PM Author: LexisNexis Tax Center Portability of Unused Estate and Gift Tax Exemption Between Spouses
6. Portability Applies for Gift Tax Purposes. Portability applies for the gift exemption as well as the estate exemption. 2010 Act § 303(b)(1) amends IRC § 2505(a)(1), which describes the "applicable credit amount" for gift tax purposes, by referring to the applicable credit amount under §2010(c) "which would apply if the donor died as of the end of the calendar year...." (Under §2505(a)(2), the credit amount is further reduced by the amounts of credit allowable in preceding years.) The applicable credit amount under §2010(c) includes the deceased spousal unused exclusion amount, so that amount is also included in the gift exemption amount. 7. Portability Does Not Apply for GST Tax Purposes. Portability does not apply to the GST exemption.
8. Effective Date - Decedents Dying After 2010. The provision applies to the estates of decedents dying and gifts made after 2010. [2010 Act § 303(c)(1).] The Joint Committee on Taxation Technical Explanation takes the position that portability applies only if the first spouse dies after 2010. Available for Two Years. Like the rest of the estate and gift tax provisions in the 2010 Act, the portability provision expires after 2012. Although the anticipation is that Congress will extend this benefit after 2012, there are no guarantees. For further insight, see: