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The article discusses the clarification of application of passive activity rules to estates and trusts by the Tax Court. Topics discussed include the administrative ruling issued by the Internal Revenue Service (IRS), enaction of the passive activity loss limitation rules by the U.S. Congress, and application of the passive activity loss limitation to trusts and estates.

Offers ideas for tax planning that can permit United States taxpayers to keep the generation-skipping transfer (GST) tax to a minimum. Computation of the GST tax; Details on GST exemption; Way to optimize leveraging of the GST exemption; Sample cases for GST computation.

Presents information on a study which explored the situations in which the generation-skipping transfer (GST) tax applies. Overview of the GST tax; Computation of GST tax; Types of GST; Diminished possibilities of multiple GST from trusts; Conclusions.

Discusses that unreimbursed expenses for medical care in the United States may be an itemized deduction to the extent that the aggregate amount paid for the year exceeds 7.5 percent of the gross income. Internal Revenue Service rules governing medical care; Deductible items; Types of reimbursable medical expenses; Treatment of dependent's expenses; Medically related capital expenditures. INSETS: Drive up deductions.;Planning tip..

Deals with tax considerations in making gifts to minors. Information on the annual gift tax exclusion; Forms of transfer to minors; Comparison between the Uniform Gifts to Minors Act and the Uniform Transfers to Minors Act; Tax issues.