Essentials of United States Taxation

by Abrams, Howard E.; Doernberg, Richard L.

• ISBN13: 9789041109644
• ISBN10: 9041109641
• Format: Hardcover
• Copyright: 1999-05-01
• Publisher: Kluwer Law Intl

Summary

Where there's trade, there's taxation. And more often than not these days, that means United States taxation. Essentials of United States Taxation clearly explains basic structural features and accounting issues, corporate and partnership taxation, And The rules governing international transactions, both inbound and outbound. it provides concise, accurate answers to such questions as: What is the US tax treatment of mergers and acquisitions? How are joint ventures and other hybrid entities taxed in the United States? How does the US foreign tax credit work? What are the most tax-beneficial ways to form a business in the United States? How can special profit and loss allocations under US partnership law be used in international transactions? The only easily readable overview of the subject available, this book is useful in two different ways. Reading it cover to cover provides a crystal-clear 'picture' of the US tax system, yet the book is also of great value as a quick reference when a US tax problem needs to be solved. Numerous real-life examples make specific provisions of the US tax system easily understandable even to readers with no background in the subject.

Table of Contents

Part 1: General Principles
Overview of Taxation in the United States	1-1
Constitutional Issues	1-1
Federal Taxes	1-2
Income tax	1-2
Payroll tax	1-2
Excise tax	1-3
Transfer taxes	1-4
State and Local Taxes	1-4
Corporate income or franchise tax	1-4
Individual income tax	1-5
Estate or inheritance tax	1-5
Sales and use taxes	1-6
Property taxes	1-6
Miscellaneous taxes	1-6
Federal Income Taxation: Structural Issues	1-7
Tax Rates	1-7
Tax Base	1-8
Income	1-8
Deductions	1-9
Credits	1-10
Compliance	1-10
Alternative minimum tax	1-12
Federal Income Tax: Conceptual Issues	1-13
Income	1-13
Compensation	1-13
Periodic payments	1-15
Property dispositions	1-16
Amount realized	1-17
Basis	1-17
Indebtedness	1-19
Recognition	1-20
Section 1031	1-20
Other nonrecognition provisions	1-23
Discharge of indebtedness	1-24
Original issue discount	1-27
Deductions	1-29
Trade or business expenses	1-29
Depreciation and amortization	1-30
Interest	1-33
Losses and bad debts	1-35
Deduction vs. capital expenditure	1-36
Deduction vs. personal expense	1-38
Net operating losses	1-39
Credits	1-40
Timing	1-41
Taxable period	1-41
Method of accounting	1-41
Cash method	1-41
Accrual method	1-42
Accounting for inventory	1-43
Installment reporting	1-44
At-risk rules	1-46
Passive activity losses	1-47
Characterization	1-49
Definition of a capital asset	1-50
Holding period	1-52
Sale or exchange requirement	1-53
Section 1231 assets	1-54
Depreciation recapture	1-55
Treatment of capital gains	1-56
Treatment of capital losses	1-58
Related party issues	1-59
Assignment of income	1-59
Transfer pricing	1-61
Legislative, Administrative and Judicial Aspects	1-63
Legislative Process	1-63
Administrative Process	1-64
Organization of the IRS	1-64
IRS interpretation of the tax law	1-64
IRS administrative proceedings	1-66
Judicial Process	1-67
Part 2: Corporate Taxation
The Corporate Double Tax	2-1
Introudction and History	2-1
Revenue Effects	2-3
The Incidence of the Corporate Tax	2-4
Forming a Corporation	2-9
Introduction	2-9
Section 351: The Basics	2-10
A §351 Roadmap	2-12
``Property'' Requirement	2-15
What Constitutes a ``Transfer''	2-16
``Stock'' Requirement	2-17
Boot	2-18
Assumption of liabilities	2-19
The definition of ``stock''	2-24
Debt instruments	2-26
Transferor's basis	2-27
Treatment of the transferee	2-30
``Control'' Requirement	2-32
The ``control'' group	2-34
``Immediately after''	2-36
The Relationship of §351 to Other Provisions and Legal Doctrines	2-38
Section 351 vs. sale	2-39
Assignment of income	2-41
Business purpose	2-43
Tax benefit rule	2-43
The Corporation as a Taxable Entity	2-45
Corporate Tax Rates and Base	2-45
Associations Taxable as Corporations	2-50
Ignoring the Corporation: Dummy Corporations	2-52
Ignoring the Corporation: Reallocation of Income and Related Issues	2-55
The Passive Loss Limitations	2-63
A Corporation's Capital Structure	2-65
Cash and Property Distributions	2-73
Introduction	2-73
Earnings and Profits	2-75
Relief From Dividends	2-82
Treatment of the Distributing Corporation	2-87
Effect of Property Distributions on Earnings and Profits	2-94
Treatment of Shareholders	2-97
Constructive Dividends	2-97
Constructive Dividends and Corporate Shareholders	2-105
Redemptions	2-109
Introduction	2-109
Redemptions Taxed as Exchange	2-112
Complete terminations	2-112
Substantially disproportionate redemptions	2-117
Redemptions not essentially equivalent to a dividend	2-120
Partial liquidations	2-123
Redemptions to pay death taxes	2-127
Redemptions Taxed as Distributions	2-128
Corporate-Level Taxation of Redemptions	2-130
Redemptions Related to Other Transactions	2-134
Redemptions for More or Less Than Fair Market Value	2-138
Redemption premiums	2-138
Stock surrenders	2-140
Redemptions Through Related Corporations	2-145
Stock Dividends	2-153
Overview and History	2-153
The General Rule of §305(a)	2-155
Exceptions to the General Rule Under §305(b)	2-156
Deemed Distributions Under §305(c)	2-163
Poison Pills	2-165
Tainted Stock	2-167
The Preferred Stock Bailout	2-167
Definition of §306 Stock	2-168
Disposition of §306 Stock	2-172
Liquidations	2-177
Introduction	2-177
Section 331 Liquidations	2-179
Treatment of the shareholders	2-179
Treatment of the liquidating distribution	2-181
The Court Holding Co. doctrine and former §337	2-188
The corporate triple tax	2-192
Subsidiary Liquidations	2-193
Treatment of the parent-corporation	2-194
Treatment of the subsidiary-corporation	2-196
Carryover of tax attributes	2-198
Taxable Acquisitions	2-199
Asset Purchases	2-199
Stock Purchases	2-202
Section 338 Election	2-203
Qualified stock purchases	2-205
Election	2-205
Operation of §338	2-206
Adjustments for liabilities	2-207
Allocation of basis	2-208
Consistency requirements and deemed elections	2-209
Acquisition of a subsidiary from a consolidated group	2-210
Expenses in Connection with an Acquisition	2-211
Corporate Acquisitions and the Use of Debt	2-212
Stock Acquisitions out of retained earnings	2-212
Debt financed stock acquisitions and leveraged buyouts	2-212
Risks of excessive corporate debt	2-214
Reorganizations	2-219
Introduction	2-219
Amalgamating Reorganizations: Definitions	2-221
``A'' reorganizations	2-221
``B'' reorganizations	2-228
``C'' reorganizations	2-231
Nondivisive ``D'' reorganizations	2-235
Parent/subsidiary combinations	2-239
``G'' reorganizations	2-242
The status of creditors in a reorganization	2-246
A retrospective on the rules of §368	2-248
Amalgamating Reorganizations: Taxation	2-249
Corporate-level taxation	2-250
Shareholder-level taxation	2-254
A note on ``securities''	2-261
Divisive Reorganizations	2-263
Basic requirements	2-263
Taxation of successful and failed divisions	2-273
Divisive reorganizations and transfers of control	2-274
Pre-distribution transfers of control	2-274
Post-distribution loss of control	2-275
Alternatives to §355	2-281
One-Party Reorganizations	2-282
Combining Tax Attributes	2-287
Introduction	2-287
Section 381	2-288
Section 382	2-289
Ownership changes	2-291
Constructive ownership	2-292
Preferred stock	2-293
Option	2-293
Continuity of business	2-293
Corporate value	2-294
Built-in gain and built-in losses	2-294
Section 383	2-295
Section 384	2-295
Section 269	2-297
Affiliated Corporations	2-299
Eligibility for filing	2-300
Election to file a consolidated return and other accounting considerations	2-300
Computation of a consolidated return: in general	2-301
Computation of a consolidated return: intercompany transactions	2-301
Computation of a consolidated return: intercompany distributions	2-302
Investment basis accounts and excess loss accounts	2-303
Limitations on consolidated reporting	2-304
Penalty Provisions	2-309
Introduction	2-309
Accumulated Earnings Tax:	2-310
Overview	2-310
Unreasonable accumulations	2-311
Matching earnings and reasonable needs	2-314
Burden of proof	2-315
Computation of the accumulated earnings tax	2-316
Personal Holding Company Tax	2-317
Overview	2-317
Stock ownership test	2-318
Income test	2-319
Adjusted ordinary gross income	2-319
Personal holding company income	2-320
Computation	2-322
Collapsible Corporations	2-324
Overview	2-324
The framework of §341	2-325
Definition of a collapsible corporation	2-326
Presumption of collapsibility	2-328
The limitations of §341 (d)	2-329
Section 341 (e) amnesty	2-330
Consents under §341 (f)	2-331
Collapsible corporations: the King case	2-331
S Corporations	2-335
Introduction	2-335
Qualification and Election	2-336
One Class of Stock	2-338
Formation	2-342
Pass-Thru of Corporate Income and Deduction	2-342
Shareholder Debt and Equity Basis; Loss Limitations	2-344
Debt and equity basis	2-344
At-risk rules and passive loss limitations	2-350
Pre-contribution appreciation and related problems	2-351
Family Ownership and §1366 (e)	2-352
Nonliquidating Distributions	2-353
Dispositions of Shares and Liquidating Distributions	2-357
Disposition of stock not in redemption	2-357
Redemptions of stock	2-359
Liquidating distributions	2-360
Transition Issues	2-361
From C corporation to S corporation	2-361
Shareholder taxation of distributions	2-361
Corporate-level tax on built-in gains	2-365
Disabilities associated with passive investment income	2-367
Corporate tax on excessive passive income	2-367
Forced termination of S corporation status	2-369
No carryover from C year to S year	2-370
From S corporation to C corporation	2-370
Part 3: Partnership Taxation
The Structure of Partnership Taxation	3-1
A Note on Limited Liability Companies	3-1
The Pass-Thru of Partnership Income	3-2
Formation and Operation of the Partnership	3-4
Nonliquidating Distributions	3-7
Liquidating Distributions and Sales of Partnership Interests	3-13
Determining Distributive Shares	3-15
Basic Maintenance of Capital Accounts	3-17
Economic Effect I: The General Test	3-18
Economic Effect II: The Alternate Test	3-27
Failure to Satisfy the Economic Effect Test	3-32
Allocations With Respect to Contributed Property	3-35
Allocations to the Contributing Partner Under §704 (c) (1) (A)	3-35
Reverse §704 (c) Allocations to the Existing Partners	3-46
Allocations of Deductions Attributable to Nonrecourse Debt	3-47
Definitions	3-48
Nonrecourse liability	3-48
Minimum gain	3-49
Nonrecourse deductions	3-50
General principles	3-52
Distribution of refinancing proceeds	3-60
Book/tax disparities	3-61
Partner nonrecourse debt	3-62
Substantiality Under §704 (b)	3-62
Prohibitions on Retroactive Allocations	3-66
A Partner's Outside Basis	3-69
Basic Principles Under §705	3-69
Partnership Indebtedness and Outside Basis	3-71
History and basic principles	3-72
Allocations under the regulations	3-75
Recourse liabilities	3-76
Nonrecourse liabilities	3-79
Why §752?	3-84
Nonliquidating Distributions	3-87
Distributions Not Subject to §751 (b)	3-87
Basic taxation rules	3-87
Recognition of gain and loss	3-87
Basis of distributed property and outside basis	3-87
The timing of taxation	3-89
Distributions and capital accounts	3-90
Excess cash	3-90
Appreciated and loss property	3-92
Pre-distribution book/tax disparities	3-93
Book/tax disparity caused by asset revaluation	3-94
Book/tax disparity caused by insufficient outside basis	3-95
Distributions of encumbered property	3-96
Distribution of marketable securities	3-97
Disposition of distributed assets	3-98
Distributions Subject to §751 (b)	3-100
The definition of unrealized receivables	3-100
The definition of substantially appreciated inventory	3-101
Partnership inventory items	3-101
Substantial appreciation	3-102
Operation of §751 (b)	3-103
Does §751 (b) make sense?	3-108
A Partner's Transactions with the Partnership	3-111
Guaranteed and Similar Payments	3-111
Disguised Sales and Related Problems	3-116
Disguised sales under §707 (a) (2) (B)	3-116
Distributions of contributed property	3-120
Swap transactions under §737	3-122
Capitalization avoidance and §707 (a) (2) (A)	3-123
Limitations Applicable to Controlled Partnerships	3-126
Disallowed losse	3-126
Capital gains	3-128
Acquisitions of Partnership Interests	3-129
Contributions of Property	3-129
Basic principles	3-129
Encumbered property	3-131
Payables and receivables	3-134
Promissory notes	3-135
Holding periods	3-135
Disposition of contributed property	3-136
Contributions to investment companies	3-137
Contributions of Services	3-137
Taxation of the contributing partner	3-138
Taxation of the partnership	3-142
Non-contribution Acquisitions	3-145
Dispositions of Partnership Interests	3-147
Distributions in Liquidation of a Partnership Interest	3-147
A note on §§731-732	3-148
Application of §736	3-153
A first note on the application of §736	3-153
Classification of payments under §73	3-154
Taxation of payments in liquidation of a general partnership interest when capital is not a material income-producing factor	3-156
Taxation of payments under §736 (b)	3-158
Deferred payments under §736	3-160
Section 736, partnership goodwill and the §704 (b) regulations	3-162
A final note on the application of §736	3-163
Disposition of a Partnership Interest	3-165
Basic rules	3-165
Application of §751 (a)	3-166
Non-sale dispositions	3-168
Closing of the taxable year	3-168
Termination of the partnership	3-169
Death of a partner	3-173
Loss Limitations	3-175
Section 704 (d): The Outside Basis Limitation	3-175
The relation of §704(d) to §704(c)	3-176
Transfers of partnership interests	3-177
Section 465: The At-Risk Limitations	3-179
An overview of §465	3-179
Application of §465 to partners and partnerships	3-182
A Re-examination of §704(d) and its Relation to §704(b)	3-184
Misallocations of loss	3-184
Contributions of notes	3-188
Section 469: The Passive Loss Limitations	3-190
Section 163(d): The Investment Interest Limitation	3-191
Optional Basis Adjustments	3-195
The Optional Basis Adjustment Under §734(b)	3-196
Distributions triggering the optional basis adjustment	3-196
Nonliquidating distributions of excess cash	3-196
Nonliquidating distributions of high-basis property	3-197
Liquidating distributions	3-198
The amount of the adjustment under §734(b)	3-199
Allocating the §734(b) adjustment under §755	3-200
Allocation of positive §734(b) adjustments	3-201
Allocation of negative §734(b) adjustments	3-203
Allocation of §734(b) adjustments to depreciable property	3-204
The Optional Basis Adjustment Under §743(b)	3-205
Two-way adjustments under §743(b)	3-206
Allocating the §743(b) adjustment under §755	3-213
Basic rules	3-213
Allocation of §743(b) adjustments to depreciable property	3-215
Partnership disposition of adjusted property	3-216
Distribution of property subject to a §743(b) basis adjustment	3-216
Mechanics of the Election	3-218
Optional Basis Adjustments and Capital Accounts	3-220
Basis Adjustments Under §732(d)	3-221
Partnership-Level Issues	3-225
Classification as a Partnership	3-225
Elective classification	3-226
Publicly traded partnerships	3-228
Recognizing partner status	3-229
General principles	3-229
Family partnerships	3-229
Partnership Elections	3-233
Taxable year	3-234
Method of accounting	3-236
Special Issues	3-236
The anti-abuse rules	3-236
The general anti-abuse rule	3-237
The abuse of entity rule	3-239
Treatment of organization and syndication expenses	3-240
Cancellation of indebtedness income and §108	3-241
Mergers and Divisions	3-243
Part 4: International Taxation
Introduction	4-1
Growth of International Trade	4-1
Economics of International Trade	4-1
The Central Problem of International Taxation	4-1
Economics of Juridical Double Taxation	4-2
Overview of Worldwide International Tax Systems	4-4
Basic U.S. Jurisdictional Tax Principles	4-7
Introduction to U.S. Taxing Provisions	4-7
Outbound Transactions	4-7
Inbound Transactions	4-8
Individuals	4-8
Corporations	4-10
Partnerships	4-11
Citizenship and Residency	4-11
Individuals	4-11
Corporations	4-13
Expatriates	4-14
Introduction to U.S. Income Tax Treaties	4-15
Taxing Rules	4-17
Overview	4-17
``Engaged in a Trade or Business'' in the United States	4-17
``Effectively Connected'' Income	4-20
U.S. source income	4-20
Foreign source income	4-21
Income effectively connected to a pre-existing trade or business	4-22
Effectively connected income election	4-23
Nonbusiness Income from U.S. Sources	4-23
Interest	4-24
Original issue discount	4-24
Portfolio interest	4-25
Bank deposits	4-27
Interest substitutes	4-28
Dividends	4-28
Rents	4-29
Income from services	4-29
Social security benefits	4-30
Other FDAP income	4-30
Capital gains	4-31
The Branch Profits Tax	4-31
The branch profits tax on branch earnings	4-31
The branch profits tax on interest	4-33
The branch profits tax and secondary withholding on dividends	4-34
Foreign Investment in U.S. Real Property	4-34
Operational income	4-34
Dispositional income	4-36
Transportation Income	4-38
Taxation of Foreign Governments	4-39
Source Rules	4-41
The Income Source Rules	4-41
Interest	4-41
Domestic payor	4-41
Foreign payor	4-42
Dividends	4-43
Domestic payor	4-43
Foreign payor	4-43
Personal services	4-43
Rentals and royalties	4-46
Real property	4-48
Personal property	4-48
Purchased inventory	4-48
Produced personal property	4-49
Intangible property	4-50
Depreciable personal property	4-51
Other personal property	4-51
Sales through offices or fixed places of businesses in the united states	4-52
Other gross income	4-52
Residence for source rule purposes	4-53
Deduction Allocation Rules	4-54
In general	4-54
Interest	4-57
Research and experimental expenditures	4-59
Losses	4-61
The Role of Income Tax Treaties	4-63
The Bilateral Income Tax Treaty Network	4-63
The Treaty-Making Process in the United States	4-64
The Relationship of Income Tax Treaties and the Code	4-64
Development of Model Income Tax Treaties	4-65
Income Tax Treaty Provisions	4-66
Interpretation of U.S. income tax treaties	4-67
Scope of the treaty	4-67
Definitions	4-68
Classification and assignment rules	4-69
Business income	4-69
Personal services income	4-72
Investment income	4-74
Other income	4-75
Avoidance of double taxation	4-76
Limitation on benefits	4-76
Treaty benefits for hybrid entities	4-78
Nondiscrimination	4-78
Mutual agreement procedure	4-80
Exchange of information and administrative assistance	4-81
Tax Sparing	4-82
Filing, Withholding, and Reporting Requirements	4-85
Filing Requirements	4-85
Sailing Permits	4-86
The Need for Withholding	4-86
Withholding on Dividends, Interest, and Other Periodic Payments	4-86
Income subject to withholding	4-87
Reduced rates of withholding	4-90
Who is a Withholding Agent?	4-91
Payments involving partnerships	4-92
Payments to foreign intermediaries	4-94
FIRPTA Withholding	4-97
Introduction to U.S. Business Activity in Foreign Countries	4-101
Introduction	4-101
Citizens and Residents of the United States Living Abroad	4-102
Introduction	4-102
Foreign income exclusion	4-103
Housing cost amount	4-104
The Foreign Tax Credit	4-105
Overview	4-105
Relieving double taxation	4-105
The statutory framework	4-108
Eligibility	4-109
Creditable Taxes	4-109
Is the foreign levy a tax?	4-110
Is the tax a separate tax or part of a broader tax?	4-112
Is the tax an income tax?	4-112
Taxes in lieu of an income tax	4-115
Who can claim the foreign tax credit	4-116
What is the amount of the creditable foreign income tax	4-117
Computing the Direct Credit	4-118
Computing the Indirect Credit	4-119
Overview	4-119
Minimum ownership requirements	4-120
Amount of tax deemed paid	4-121
Limitations on the Foreign Tax Credit	4-124
Overview	4-124
Separate ``baskets''	4-127
Passive Income Basket	4-128
High withholding tax interest basket	4-129
Noncontrolled section 902 dividend basket	4-131
Look-through rules	4-133
Treatment of foreign losses	4-134
Treatment of U.S. losses	4-136
Tax credit source rules	4-137
Effect of Treaties on the Foreign Tax Credit	4-138
Intercompany Pricing	4-139
Overview	4-139
Application of §482 in General	4-141
Application of §482 to Specific Transactions	4-143
Sales	4-143
Comparable uncontrolled price method	4-145
Resale price method	4-146
Cost plus method	4-147
Comparable profits method	4-148
Profit split method	4-148
Services	4-150
Rentals of tangible property	4-151
Licenses of intangible property	4-151
The comparable uncontrolled transaction method	4-151
Comparable profit method	4-152
Profit split method	4-153
Other methods	4-153
Periodic adjustments	4-153
Identification of the developer	4-154
Cost sharing agreements	4-155
``Round trip'' transactions	4-156
Loans	4-157
Comparable Profits Method	4-157
Methodology	4-158
Examples	4-158
Profit Split	4-161
The Interplay of §482 and Foreign Law	4-163
Other §482 Adjustments	4-166
Accuracy-Related Penalty	4-167
Section 482 and the Foreign Tax Credit	4-168
Section 482 and U.S. Income Tax Treaties	4-169
Advance Pricing Agreements	4-169
Reporting Requirements for Related Taxpayers	4-171
Controlled Foreign Corporations and Related Provisions	4-175
Overview	4-175
Definitions: Controlled Foreign Corporation and United States Shareholder	4-176
Income Taxable to Shareholders	4-177
Subpart F income	4-178
Foreign personal holding company income	4-178
Foreign base company sales income	4-180
Foreign base company services income	4-184
Other foreign base company income	4-185
Allocation of deductions	4-186
Relief provisions	4-186
Insurance income	4-187
Increase in earnings invested in U.S. property	4-188
Adjustments to Stock Basis	4-190
Foreign Tax Credit	4-190
Passive Foreign Investment Companies (PFICs)	4-192
Related Provisions	4-195
Gains from the sale of certain stock	4-196
Accumulated earnings tax provisions	4-197
Personal holding company tax provisions	4-197
Foreign Currency	4-199
Overview	4-199
Functional Currency	4-202
Foreign Currency Transactions	4-203
Acquisition and disposition of foreign currency	4-204
Lending and borrowing foreign currency	4-205
Acquisition and disposition of assets denominated in foreign currency	4-206
Accounts receivable and payable	4-207
Forward, futures and option contracts	4-208
Hedging	4-208
Foreign Currency Translation	4-210
Foreign branches	4-210
Foreign corporations	4-212
Treatment of Individuals	4-213
International Tax-Free Transactions	4-215
Overview	4-215
Outbound Transactions	4-217
General rule	4-217
The active trade or business exception	4-219
The stock or securities exception	4-220
Treatment of liquidating corporation	4-222
Branch loss recapture rule	4-225
Transfers to estates, trusts and partnerships	4-226
Non-Outbound Transactions	4-226
Tax Arbitrage and Economic Substance	4-231
Introduction	4-231
The Check-The-Box Regulations	4-233
A Tax Arbitrage Sampler	4-235
Hybrid entities	4-235
Hybrid instruments	4-236
Cross-border leasing	4-237
Dual consolidated loses	4-239
U.S. Tax Authorities' Response	4-240
Foreign Sales Corporations	4-243
Overview	4-243
FSC Qualification	4-244
Foreign Trade Income	4-245
Export-related income	4-245
Foreign management	4-246
Foreign economic processes	4-246
Taxation of a FSC	4-248
Special Rules for Small Corporations	4-253
International Boycott and Foreign Bribery Provisions	4-255
Overview of International Boycott Provisions	4-255
Boycott Participation	4-256
Examples of Penalized Conduct	4-257
Discriminatory refusals to do business	4-257
Discriminatory hiring practices	4-258
Foreign Bribery Provisions	4-262
Estate and Gift Taxation for Resident and Nonresident Aliens	4-265
The U.S. Estate Tax	4-265
Residency for estate, gift and generation-skipping tax purposes	4-266
Gross estate	4-267
U.S. real property	4-267
Tangible personal property	4-268
Intangible personal property	4-268
Shares of stock in a corporation	4-268
Debt obligations	4-269
Insurance policies, annuities and choses in action	4-269
Certain lifetime transfers	4-269
Deductions used to determine taxable estate	4-269
Computation of estate tax	4-271
Credits subtracted to determine tax due	4-271
The U.S. Gift Tax	4-272
Taxable transfers	4-272
Exclusions from gift tax	4-272
Computation of gift tax	4-273
The U.S. Generation-Skipping Transfer Tax	4-273
Generation-skipping transfers	4-274
Exemptions and deductions	4-275
Computation of generation-skipping tax	4-275
Credits subtracted to determine tax due	4-275
U.S. Estate, Gift, and Generation-Skipping Transfer Tax Treaties	4-275
Foreign Trusts	4-276
Foreign trusts	4-276
Taxation of the creation of a foreign trust	4-277
Taxation of foreign trust income and distributions	4-277
Foreign grantor trusts	4-278
Indexes
Index to Part 1	5-1
Index to Part 2	5-9
Index to Part 3	5-33
Index to Part 4	5-39