Questions of the Week – Page 40

Student Question of the Week: Income Tax

Student Question from: Rachael GCourse: Income Tax Student Question: I had a couple questions in regards to tax filing penalties. 1) Since the penalty is calculated from net tax due, what happens when a taxpayer overpaid taxes and gets a refund? How is the penalty calculated? 2) Is the minimum penalty after 60 days on…

Student Question: Question: What would happen if a person used the maximum lifetime gift exclusion of $5,120,000 in the year 2012. But the person dies in the year 2015 assuming the limit dropped to a lower amount like 1 or 2 million? The lifetime amount gifted would be higher than the current limit. Instructor Response: Answer: …