Question 1

The maximum amount of the stock redemption proceeds under Sec. 303 is determined by summing all of the following except

Accepted Answer

A)  the estate's death taxes. 
B)  the estate's funeral expenses. 
C)  the estate's administrative expenses. 
D)  All are allowable. 
A)  the estate's death taxes. 
B)  the estate's funeral expenses. 
C)  the estate's administrative expenses. 
D)  All are allowable.

Question 2

Identify which of the following statements is true.

Accepted Answer

A)  A courtesy interest is a widower's interest in his deceased wife's property. 
B)  All gifts made within three years of the date of death must be included in the gross estate. 
C)  Dower rights are not the same as courtesy rights. 
D)  All of the above are false. 
A)  A courtesy interest is a widower's interest in his deceased wife's property. 
B)  All gifts made within three years of the date of death must be included in the gross estate. 
C)  Dower rights are not the same as courtesy rights. 
D)  All of the above are false.

Question 3

In 2016, Clara made taxable gifts of $2 million. This year, Clara dies with a taxable estate of $4 million. At the time of her death, the FMV of the property Clara gifted in 2001 is $8 million. What is the amount of the estate tax base?

Accepted Answer

$2,000,000

Question 4

An executor can value each asset in an estate at the lower of its FMV at death or the alternate valuation date.

Accepted Answer

A) True 
 B)False

Question 5

In 2006, Roger gives stock valued at $100,000 to Martha. Roger and Martha are not related. In 2008, Martha uses the stock then valued at $110,000 as partial consideration to acquire realty costing $220,000. Pat (her brother) furnishes the remaining $110,000 of consideration. The realty is titled in the names of Martha and Pat as joint tenants with right of survivorship. This year, Martha dies and Pat survives. The realty is valued at $300,000 at Martha's death. How much, if any, of the realty's value will be included in Martha's estate?

Accepted Answer

A)  $0 
B)  $110,000 
C)  $150,000 
D)  $300,000 
A)  $0 
B)  $110,000 
C)  $150,000 
D)  $300,000

Question 6

A terminable interest is one that ceases upon the passage of time or the occurrence of some event.

Accepted Answer

A) True 
 B)False

Question 7

Identify which of the following statements is true.

Accepted Answer

A)  The tax base for the federal estate tax is the total of the decedent's taxable estate and post-1976 taxable gifts. 
B)  Property included in a decedent's gross estate consists of only that property to which the decedent held title. 
C)  Funeral expenses are not deductible from the gross estate. 
D)  All of the above are false. 
A)  The tax base for the federal estate tax is the total of the decedent's taxable estate and post-1976 taxable gifts. 
B)  Property included in a decedent's gross estate consists of only that property to which the decedent held title. 
C)  Funeral expenses are not deductible from the gross estate. 
D)  All of the above are false.

Question 8

In February of this year, Tom dies. Two years and nine months before the date of death, Tom made a gift of stock valued at $2 million. Gift taxes paid on the transfer by Tom were $435,000 after reduction for a $345,800 unified credit ($780,800 - $345,800). At the time of his death, the gifted stock was valued at $2.3 million. The amount included in Tom's gross estate from this transfer is

Accepted Answer

A)  $2,000,000. 
B)  $2,300,000. 
C)  $435,000. 
D)  none of the above. 
A)  $2,000,000. 
B)  $2,300,000. 
C)  $435,000. 
D)  none of the above.

Question 9

On December 1, 1976, Bart made a gift and claimed a $30,000 specific exemption. When Bart died in 2017, his tax base was $2,000,000. Assuming the maximum unified credit is $780,800, what is the credit available when computing Bart's estate tax?

Accepted Answer

$780,800 - ($30,000 × 0.20) =

Question 10

Discuss some of the factors to be considered in determining the amount of property that should pass under the marital deduction.

Accepted Answer

Except in small estates, an amount equal

Question 11

Which of the following circumstances would cause the gifted property to be included in the donor's gross estate? I. Donor retains a life estate in the gift property.
II) Donor retains the power to revoke or amend the gift.
III) Donor gives more than $14,000 to one donee in one year.
IV) Donor dies within three years of gifting land.

Accepted Answer

A)  I, II and III 
B)  I, II 
C)  II, IV 
D)  III, IV 
A)  I, II and III 
B)  I, II 
C)  II, IV 
D)  III, IV

Question 12

Outline and briefly describe the estate tax computation, beginning with the gross estate.

Accepted Answer

Sum of: Property titled to decedent and

Question 13

Following are the fair market values of Wilma's assets at her date of death:   The executor of Wilma's estate did not elect the alternate valuation date. The amount includible in Wilma's gross estate is

Accepted Answer

A)  $150,000. 
B)  $550,000. 
C)  $800,000. 
D)  $950,000. 
A)  $150,000. 
B)  $550,000. 
C)  $800,000. 
D)  $950,000.

Question 14

The alternate valuation date can be elected for estate tax purposes only if the election

Accepted Answer

A)  increases the value of the gross estate. 
B)  decreases the value of the gross estate. 
C)  decreases the estate tax liability (after reduction for tax credits). 
D)  Both B and C are required. 
A)  increases the value of the gross estate. 
B)  decreases the value of the gross estate. 
C)  decreases the estate tax liability (after reduction for tax credits). 
D)  Both B and C are required.

Question 15

Karen died on May 5 of the current year. Her executor elects date-of-death valuation. Karen's gross estate possibly includes the following items:
• Joint checking account (with her husband), which has a balance of $10,000. Her husband did not contribute to the account.
• Joint savings account (with her daughter), which has a balance of $50,000. Her daughter did not contribute to the account.
• Life insurance policy on the life of Karen, having a face value of $400,000. The cost of a comparable policy immediately before Karen's death is $150,000. Karen's estate is the beneficiary.
• Life insurance policy on the life of Karen's daughter, having a face value of $100,000 with an interpolated terminal reserve immediately before Karen's death of $30,000.
Unexpired premiums are $5,000. Karen is the beneficiary. How much, if any, of these items are included in Karen's estate?

Accepted Answer

$490,000 = $5,000 (one-half of joint che

Question 16

In 1997, Barry and Fred provide $20,000 and $60,000 of consideration, respectively, to purchase a beach house titled in both their names as joint tenants with right of survivorship. Barry dies in the current year and is survived by Fred. The beach house is valued at $100,000. What amount must be included in Barry's gross estate for the beach house?

Accepted Answer

@#IMG-DLM& × $100,00

Question 17

Identify which of the following statements is true.

Accepted Answer

A)  In general, an estate tax return is not required to be filed unless the value of the gross estate and adjusted taxable gifts exceeds the exemption equivalent. 
B)  Estate taxes must be paid when the return is filed, including any extensions. 
C)  The estate tax return is due, ignoring extensions, 12 months after the decedent's date of death. 
D)  All of the above are false. 
A)  In general, an estate tax return is not required to be filed unless the value of the gross estate and adjusted taxable gifts exceeds the exemption equivalent. 
B)  Estate taxes must be paid when the return is filed, including any extensions. 
C)  The estate tax return is due, ignoring extensions, 12 months after the decedent's date of death. 
D)  All of the above are false.

Question 18

Explain how shares of stock traded on a stock exchange are valued. What is the blockage rule?

Accepted Answer

Shares traded on a stock exchange are va

Question 19

On March 1, Bart transfers ownership of a $700,000 life insurance policy on his life that he purchased in 2019. How long must Bart live to avoid inclusion of the $700,000 death benefit in his estate?

Accepted Answer

A)  six months 
B)  one year 
C)  three years 
D)  No minimum time period exists. 
A)  six months 
B)  one year 
C)  three years 
D)  No minimum time period exists.

Question 20

On March 1, Sue transfers stock worth $20,000 to Frank. How long must Sue live to avoid inclusion of the $20,000 of stock in her gross estate?

Accepted Answer

A)  six months 
B)  one year 
C)  three years 
D)  No minimum time period exists, but she must be alive at transfer of ownership. 
A)  six months 
B)  one year 
C)  three years 
D)  No minimum time period exists, but she must be alive at transfer of ownership.

The maximum amount of the stock redemption proceeds under Sec. 303 is determined by summing all of the following except

Identify which of the following statements is true.

In 2016, Clara made taxable gifts of $2 million. This year, Clara dies with a taxable estate of $4 million. At the time of her death, the FMV of the property Clara gifted in 2001 is $8 million. What is the amount of the estate tax base?

An executor can value each asset in an estate at the lower of its FMV at death or the alternate valuation date.

A terminable interest is one that ceases upon the passage of time or the occurrence of some event.

Identify which of the following statements is true.

On December 1, 1976, Bart made a gift and claimed a $30,000 specific exemption. When Bart died in 2017, his tax base was $2,000,000. Assuming the maximum unified credit is $780,800, what is the credit available when computing Bart's estate tax?

Discuss some of the factors to be considered in determining the amount of property that should pass under the marital deduction.

Outline and briefly describe the estate tax computation, beginning with the gross estate.

Following are the fair market values of Wilma's assets at her date of death: The executor of Wilma's estate did not elect the alternate valuation date. The amount includible in Wilma's gross estate is

The alternate valuation date can be elected for estate tax purposes only if the election

Identify which of the following statements is true.

Explain how shares of stock traded on a stock exchange are valued. What is the blockage rule?

On March 1, Bart transfers ownership of a $700,000 life insurance policy on his life that he purchased in 2019. How long must Bart live to avoid inclusion of the $700,000 death benefit in his estate?

On March 1, Sue transfers stock worth $20,000 to Frank. How long must Sue live to avoid inclusion of the $20,000 of stock in her gross estate?

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Us Taxation of Foreign-Related Transactions

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Exam 13: The Estate Tax

The maximum amount of the stock redemption proceeds under Sec. 303 is determined by summing all of the following except

Identify which of the following statements is true.

In 2016, Clara made taxable gifts of $2 million. This year, Clara dies with a taxable estate of $4 million. At the time of her death, the FMV of the property Clara gifted in 2001 is $8 million. What is the amount of the estate tax base?

An executor can value each asset in an estate at the lower of its FMV at death or the alternate valuation date.

A terminable interest is one that ceases upon the passage of time or the occurrence of some event.

Identify which of the following statements is true.

On December 1, 1976, Bart made a gift and claimed a $30,000 specific exemption. When Bart died in 2017, his tax base was $2,000,000. Assuming the maximum unified credit is $780,800, what is the credit available when computing Bart's estate tax?

Discuss some of the factors to be considered in determining the amount of property that should pass under the marital deduction.

Outline and briefly describe the estate tax computation, beginning with the gross estate.

Following are the fair market values of Wilma's assets at her date of death: The executor of Wilma's estate did not elect the alternate valuation date. The amount includible in Wilma's gross estate is

The alternate valuation date can be elected for estate tax purposes only if the election

Identify which of the following statements is true.

Explain how shares of stock traded on a stock exchange are valued. What is the blockage rule?

On March 1, Bart transfers ownership of a $700,000 life insurance policy on his life that he purchased in 2019. How long must Bart live to avoid inclusion of the $700,000 death benefit in his estate?

On March 1, Sue transfers stock worth $20,000 to Frank. How long must Sue live to avoid inclusion of the $20,000 of stock in her gross estate?

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Us Taxation of Foreign-Related Transactions

Filters