T transfers T’s personal resi Sample Clauses

T transfers T’s personal resi dence to a trust that meets the requirements of a qualified personal residence trust, re- taining the right to use the residence for 12 years. On the date the residence is trans- ferred to the trust, the fair market value of the residence is $100,000. After 6 years, the trustee sells the residence, receiving net pro- ceeds of $250,000, and invests the proceeds of sale in common stock. After an additional eighteen months, the common stock has paid $15,000 in dividends and has a fair market value of $260,000. On that date, the trustee purchases a new residence for $200,000. On the purchase of the new residence, the trust ceases to be a qualified personal residence trust with respect to any amount not rein- vested in the new residence. The governing instrument of the trust provides that the trustee, in the trustee’s sole discretion, may elect either to distribute the excess proceeds or to convert the proceeds into a qualified annuity interest. The trustee elects the lat- ter option. The amount of the annuity is the amount of the annuity that would be payable if no portion of the sale proceeds had been reinvested in a personal residence multiplied by a fraction. The numerator of the fraction is $60,000 (the amount remaining after rein- vestment) and the denominator of the frac- tion is $260,000 (the fair market value of the trust assets on the conversion date). The ob- ligation to pay the annuity commences on the date of sale, but payment of the annuity that otherwise would have been payable dur- ing the period between the date of sale and the date on which the trust ceased to be a qualified personal residence trust with re- spect to the excess proceeds may be deferred until 30 days after the date on which the new residence is purchased. Any amount deferred must bear compound interest from the date the annuity is payable at the section 7520 rate in effect on the date of sale. The $15,000 of income distributed to the term holder dur- ing that period may be used to reduce the annuity amount payable with respect to that period if the governing instrument so pro- vides and thus reduce the amount on which compound interest is computed. [T.D. 8395, 57 FR 4269, Feb. 4, 1992; T.D. 8395, 57 FR 11265, Apr. 2, 1992, as amended by T.D. 8743, 62 FR 66988, Dec. 23, 1997] § 25.2702–6 Reduction in taxable gifts.
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Related to T transfers T’s personal resi

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  • Hardship Transfers Employees who have a hardship that involves the immediate family may request a hardship transfer. Before such transfers are granted, the Employer must determine an actual hardship exists. Because the hardship transfer takes priority over the regular list, the Employer shall advise those on the regular transfer list of the reason for the hardship transfer.

  • Transfer of Personal Information Supplier warrants to DXC that Personal Information provided to Supplier or obtained by Supplier under this Agreement on behalf of DXC (including any SOW) shall not be transferred across national boundaries unless authorized by law or specified within this Agreement or the applicable SOW as authorized for transfer across national boundaries. Supplier agrees that any such transfer will only be made in compliance with applicable Data Privacy Laws. If there is a conflict between this Section ‘Data Protection and Privacy’ and the other provisions of this Agreement, the requirements of this Section shall take precedence.

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