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    Gift Tax, Estate Tax and the Unified Crefitw

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    Completely answer the following questions

    Identify the features common to the gift tax formula and the estate tax formula.
    Explain why Congress felt it necessary to enact a gift tax to complement the estate tax.
    Describe the unified credit and the purpose it serves in the gift and estate tax.

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    Solution Preview

    1. The feature that is common to both is when the law is applied, taxes must be paid on the worth of the property or item. It would be the full amount on the item inherited and the difference between what something was discounted ...

    Solution Summary

    Similarities of the gift tax and estate tax are described and discussed, as is the reason congress enacted a gift tax and the commonalties the Unified Credit shares with the estate and gift tax.