CPA Exam Lab
Section 5: 23–33%R20

Estate, Gift, and Trust Taxation

Exam Insight

The transfer-tax system and fiduciary income tax tie together gift exclusions, the unified estate-and-gift exemption, and the DNI limit on trust deductions. OBBBA made the higher exemption permanent, so the exam now tests a stable, large exclusion amount.

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What AICPA Wants You to Know

  • 1Apply the annual gift exclusion and the unlimited marital and charitable deductions
  • 2Distinguish present from future interests and apply gift splitting
  • 3Compute the gross estate and apply estate deductions and the unified credit
  • 4Apply the OBBBA basic exclusion amount and DSUE portability
  • 5Identify generation-skipping transfer (GST) tax situations
  • 6Compute fiduciary taxable income and apply the DNI limit on distributions