Contingencies and the Gift Tax

9 Pages Posted: 11 May 2012

See all articles by Wendy C. Gerzog

Wendy C. Gerzog

University of Baltimore - School of Law

Multiple version iconThere are 2 versions of this paper

Date Written: May 10, 2012


The 2001 Tax Act has markedly changed the purpose of the gift tax; no longer a backstop to the estate tax, its sole purpose is to prevent abuses of the income tax. As it stands, the retention of the gift tax with the repeal of the estate tax is rife with inconsistencies. Although the best solution is to retain both the gift and estate taxes, if repeal of the estate taxes actually occurs consistent with this act, with its new single focus, the gift tax rules defining when a gift occurs need to be revised so that they best serve the function of prepayment of income taxes that may be lost on transfers of property from high-bracket to lower-bracket and foreign taxpayers.

Keywords: 2001 Tax Act, gift tax, estate tax repeal, contingencies

JEL Classification: H20, H24, H29, K34

Suggested Citation

Gerzog, Wendy C., Contingencies and the Gift Tax (May 10, 2012). Tax Notes, Vol. 93, No. 7, 2001. Available at SSRN:

Wendy C. Gerzog (Contact Author)

University of Baltimore - School of Law ( email )

1420 N. Charles Street
Baltimore, MD 21218
United States
410-837-4522 (Phone)

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