Question 1

Gifts to most charities are not subject to gift taxes.

Accepted Answer

A) True 
 B)False

Question 2

Carl gave his six children gifts of $16,000 each in the current year.

Accepted Answer

A)  Carl has made $90,000 of taxable gifts. 
B)  Carl has made $6,000 of taxable gifts. 
C)  Carl has made no taxable gifts if he and his wife elect gift splitting. 
D)  (b) and (c) are both true. 
A)  Carl has made $90,000 of taxable gifts. 
B)  Carl has made $6,000 of taxable gifts. 
C)  Carl has made no taxable gifts if he and his wife elect gift splitting. 
D)  (b) and (c) are both true.

Question 3

What is an income beneficiary?

Accepted Answer

An income beneficiary is the p

Question 4

The federal gift tax is:

Accepted Answer

A)  imposed upon the recipient of gifts 
B)  imposed upon property in the estate of a deceased person 
C)  imposed upon the donor on lifetime gift transfers 
D)  imposed upon the donee only if a gift is not subject to income taxes 
A)  imposed upon the recipient of gifts 
B)  imposed upon property in the estate of a deceased person 
C)  imposed upon the donor on lifetime gift transfers 
D)  imposed upon the donee only if a gift is not subject to income taxes

Question 5

Indicate by a T if the following results in a taxable gift and an N if it does not result in a taxable gift.
-Transfer of a house valued at $500,000 held in joint tenancy to the wife according to the divorce decree

Accepted Answer

The answer of Indicate by a T if the following...

Question 6

Weilin's gross estate was valued at $12,175,000 when he died in 2018. His estate paid administration expenses of $100,000 and funeral expenses of $25,000. Weilin left $50,000 to Georgia State University and $500,000 in a qualifying terminable interest property trust for his second wife. If Weilin had made $1,500,000 of prior taxable gifts in 2014, paying a gift tax of $175,000 on these gifts, how much estate tax would the estate have had to pay in 2018?

Accepted Answer

$12,175,000 - $100,000 administrative ex

Question 7

If two properties are currently of equal value, giving away the property least likely to appreciate would reduce potential estate value.

Accepted Answer

A) True 
 B)False

Question 8

Explain the difference between a simple trust and a complex trust?

Accepted Answer

A simple trust must distribute all of it

Question 9

In 2018, Boris put $12,690,000 in an irrevocable trust for his great grandson. What amount of tax will Boris have to pay because of this transfer?

Accepted Answer

This is a generation skipping trust and

Question 10

Distributable net income (DNI) is

Accepted Answer

A)  Is the maximum taxable distribution to a beneficiary from a trust 
B)  Is not taxable to the beneficiaries if it is a distribution of nontaxable income 
C)  Is the amount available for distribution from the trust 
D)  All are characteristics of DNI 
A)  Is the maximum taxable distribution to a beneficiary from a trust 
B)  Is not taxable to the beneficiaries if it is a distribution of nontaxable income 
C)  Is the amount available for distribution from the trust 
D)  All are characteristics of DNI

Question 11

When comparing lifetime transfers to testamentary transfers, which of the following would be preferable as a testamentary transfer?

Accepted Answer

A)  The property to be transferred has declined in value. 
B)  The property has increased in value. 
C)  The property is an insurance policy on the life of the transferor. 
D)  The property transferred is transferred to a qualified charity. 
A)  The property to be transferred has declined in value. 
B)  The property has increased in value. 
C)  The property is an insurance policy on the life of the transferor. 
D)  The property transferred is transferred to a qualified charity.

Question 12

A Section 529 education savings plan can only be used for the education of the specific child it was set up to benefit.

Accepted Answer

A) True 
 B)False

Question 13

What is the limit on the amount of property that can be transferred to a spouse free of any transfer taxes?

Accepted Answer

A)  $15,000 per year 
B)  $1,000,000 
C)  An unlimited amount 
D)  All transfers to a spouse are subject to transfer taxes 
A)  $15,000 per year 
B)  $1,000,000 
C)  An unlimited amount 
D)  All transfers to a spouse are subject to transfer taxes

Question 14

Payment to a college for a grandchild's tuition is not a taxable gift.

Accepted Answer

A) True 
 B)False

Question 15

The executor can elect the alternative valuation date only if both the value of the estate and the estate tax are reduced.

Accepted Answer

A) True 
 B)False

Question 16

When will an insurance policy on the decedent's life be included in a decedent's gross estate?

Accepted Answer

A)  The decedent could change the beneficiary. 
B)  The decedent paid the premiums. 
C)  The decedent gave the policy to his daughter two years ago. 
D)  Both b and C 
A)  The decedent could change the beneficiary. 
B)  The decedent paid the premiums. 
C)  The decedent gave the policy to his daughter two years ago. 
D)  Both b and C

Question 17

The alternate valuation date for an estate

Accepted Answer

A)  is elected by beneficiaries 
B)  should be elected if the size of the estate increases to receive higher bases 
C)  values the estate six months after the date of death 
D)  does not require the filing of an estate tax return to make the election 
A)  is elected by beneficiaries 
B)  should be elected if the size of the estate increases to receive higher bases 
C)  values the estate six months after the date of death 
D)  does not require the filing of an estate tax return to make the election

Question 18

Appreciated property that was inherited in 2018

Accepted Answer

A)  will have a stepped-up basis. 
B)  avoids income tax on the appreciation prior to the date of death. 
C)  avoids income tax on any post inheritance appreciation on a future sale. 
D)  (a) and (b) only. 
A)  will have a stepped-up basis. 
B)  avoids income tax on the appreciation prior to the date of death. 
C)  avoids income tax on any post inheritance appreciation on a future sale. 
D)  (a) and (b) only.

Question 19

Chloe gave $16,000 to her son, $21,000 to her daughter, and paid $18,000 to the University of Delaware for her niece's tuition. She gave $12,000 to the United Way campaign, and $18,000 to her church. What is the amount of Chloe's taxable gifts?

Accepted Answer

A)  $ 7,000 
B)  $15,000 
C)  $35,000 
D)  $53,000 
A)  $ 7,000 
B)  $15,000 
C)  $35,000 
D)  $53,000

Question 20

The basic deduction allowed on an estate income tax return is

Accepted Answer

A)  $4,000 
B)  $2,100 
C)  $600 
D)  $300 
A)  $4,000 
B)  $2,100 
C)  $600 
D)  $300

Gifts to most charities are not subject to gift taxes.

Carl gave his six children gifts of $16,000 each in the current year.

What is an income beneficiary?

The federal gift tax is:

Indicate by a T if the following results in a taxable gift and an N if it does not result in a taxable gift. -Transfer of a house valued at $500,000 held in joint tenancy to the wife according to the divorce decree

If two properties are currently of equal value, giving away the property least likely to appreciate would reduce potential estate value.

Explain the difference between a simple trust and a complex trust?

In 2018, Boris put $12,690,000 in an irrevocable trust for his great grandson. What amount of tax will Boris have to pay because of this transfer?

Distributable net income (DNI) is

When comparing lifetime transfers to testamentary transfers, which of the following would be preferable as a testamentary transfer?

A Section 529 education savings plan can only be used for the education of the specific child it was set up to benefit.

What is the limit on the amount of property that can be transferred to a spouse free of any transfer taxes?

Payment to a college for a grandchild's tuition is not a taxable gift.

The executor can elect the alternative valuation date only if both the value of the estate and the estate tax are reduced.

When will an insurance policy on the decedent's life be included in a decedent's gross estate?

The alternate valuation date for an estate

Appreciated property that was inherited in 2018

Chloe gave $16,000 to her son, $21,000 to her daughter, and paid $18,000 to the University of Delaware for her niece's tuition. She gave $12,000 to the United Way campaign, and $18,000 to her church. What is the amount of Chloe's taxable gifts?

The basic deduction allowed on an estate income tax return is

Introduction to Taxation

The Tax Practice Environment

Determining Gross Income

Employee Compensation

Deductions for Individuals and Tax Determination

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Tax-Deferred Exchanges

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Filters

Exam 12: Estates, Gifts, and Trusts

Gifts to most charities are not subject to gift taxes.

Carl gave his six children gifts of $16,000 each in the current year.

What is an income beneficiary?

The federal gift tax is:

Indicate by a T if the following results in a taxable gift and an N if it does not result in a taxable gift. -Transfer of a house valued at $500,000 held in joint tenancy to the wife according to the divorce decree

If two properties are currently of equal value, giving away the property least likely to appreciate would reduce potential estate value.

Explain the difference between a simple trust and a complex trust?

In 2018, Boris put $12,690,000 in an irrevocable trust for his great grandson. What amount of tax will Boris have to pay because of this transfer?

Distributable net income (DNI) is

When comparing lifetime transfers to testamentary transfers, which of the following would be preferable as a testamentary transfer?

A Section 529 education savings plan can only be used for the education of the specific child it was set up to benefit.

What is the limit on the amount of property that can be transferred to a spouse free of any transfer taxes?

Payment to a college for a grandchild's tuition is not a taxable gift.

The executor can elect the alternative valuation date only if both the value of the estate and the estate tax are reduced.

When will an insurance policy on the decedent's life be included in a decedent's gross estate?

The alternate valuation date for an estate

Appreciated property that was inherited in 2018

Chloe gave $16,000 to her son, $21,000 to her daughter, and paid $18,000 to the University of Delaware for her niece's tuition. She gave $12,000 to the United Way campaign, and $18,000 to her church. What is the amount of Chloe's taxable gifts?

The basic deduction allowed on an estate income tax return is

Introduction to Taxation

The Tax Practice Environment

Determining Gross Income

Employee Compensation

Deductions for Individuals and Tax Determination

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Tax-Deferred Exchanges

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Filters