What does direct skip mean on the CPA exam?
Direct skip. A transfer straight to someone two or more generations below the transferor, such as a grandchild. It triggers the generation-skipping transfer tax immediately.
Defined against Sec. 2612(c).
Which CPA exam sections use direct skip?
Direct skip appears in the TCP section of the CPA exam.
Related terms
- operating lease: A lease that does not transfer control.