What does unified credit mean on the CPA exam?
Unified credit. The credit that shelters the basic exclusion amount from gift and estate tax. Using it against lifetime gifts leaves less available at death.
Defined against Sec. 2010.
Which CPA exam sections use unified credit?
Unified credit appears in the TCP section of the CPA exam.
Other names for unified credit
applicable credit amount
Related terms
- annual exclusion: The amount a donor may give each recipient each year with no gift tax and no return.
- step-up in basis: Resetting inherited property's basis to its fair market value at the date of death, which erases the unrealized gain of the decedent's lifetime.
- grantor trust: A trust whose income is taxed to the person who created it, because they kept too much control.
- allowance for credit losses: The amount set aside for receivables not expected to be collected, estimated over the whole expected life of the asset rather than only once a loss is probable.