Question 1

Identify which of the following statements is true.

Accepted Answer

A)  Administrative expenses are not deductible on the estate's income tax return. 
B)  Casualty or theft losses incurred during the administration of the estate are not deductible on the estate tax return. 
C)  There is a limitation of $100,000 on the charitable contribution deduction for estate tax purposes. 
D)  All of the above are false. 
A)  Administrative expenses are not deductible on the estate's income tax return. 
B)  Casualty or theft losses incurred during the administration of the estate are not deductible on the estate tax return. 
C)  There is a limitation of $100,000 on the charitable contribution deduction for estate tax purposes. 
D)  All of the above are false.

Question 2

Identify which of the following statements is false.

Accepted Answer

A)  To qualify for the marital deduction, property must be includible in the decedent's gross estate. 
B)  Property is not eligible for the marital deduction if it passes to the spouse under the individual's dower rights. 
C)  A terminable interest is one that ceases upon the passage of time or the occurrence of some event. 
D)  Some, but not all, terminal interests qualify for the marital deduction. 
A)  To qualify for the marital deduction, property must be includible in the decedent's gross estate. 
B)  Property is not eligible for the marital deduction if it passes to the spouse under the individual's dower rights. 
C)  A terminable interest is one that ceases upon the passage of time or the occurrence of some event. 
D)  Some, but not all, terminal interests qualify for the marital deduction.

Question 3

Identify which of the following statements is true.

Accepted Answer

A)  The estate tax on interests in certain closely held businesses may be paid in installments over a 15-year period if elected. 
B)  An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until six months after the interests of the other person(s) terminate. 
C)  A corporation with 25 owners can be classified as a closely held business if the decedent's gross estate holds 10% of the stock. 
D)  All of the above are false. 
A)  The estate tax on interests in certain closely held businesses may be paid in installments over a 15-year period if elected. 
B)  An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until six months after the interests of the other person(s) terminate. 
C)  A corporation with 25 owners can be classified as a closely held business if the decedent's gross estate holds 10% of the stock. 
D)  All of the above are false.

Question 4

Brent, who died on January 10, owned 10 shares of Potts Corporation stock. The closest trading dates to January 10 are January 8 (two working days before the date of death) and January 11 (one working day after the date of death). On January 8, the stock traded at a high of 101 and a low of 97, while on January 11, the high was 90 and the low was 86. The date-of-death per-share value is

Accepted Answer

A)  $99.00. 
B)  $95.33. 
C)  $93.50. 
D)  $91.67. 
A)  $99.00. 
B)  $95.33. 
C)  $93.50. 
D)  $91.67.

Question 5

Which of the following is deductible in arriving at the amount of the taxable estate?

Accepted Answer

A)  expenses incurred in administering the estate 
B)  casualty losses that occurred while administering the estate 
C)  charitable contributions 
D)  All of the above are deductible. 
A)  expenses incurred in administering the estate 
B)  casualty losses that occurred while administering the estate 
C)  charitable contributions 
D)  All of the above are deductible.

Question 6

Yee made $3 million of taxable gifts in 1993 and paid gift taxes (less the unified credit) of $1,098,000. Yee died with a taxable estate of $10,000,000. At current rates, the gift taxes payable on $3 million would be $1,145,800. Yee died in a year when the unified credit was $2,045,800. Determine her estate tax liability.

Accepted Answer

Unified transfer tax base $13,

Question 7

Michael Moriarty, a widower, is quite elderly and is beginning to do some estate planning. His goal is to reduce his transfer taxes. He is considering purchasing land with a high potential for appreciation and owning it with his grandson as joint tenants with rights of survivorship. Michael would provide all of the consideration, estimated to be about 11.5 million. What tax issues should Michael Moriarty consider with respect to the purchase of the land?

Accepted Answer

• Does Michael make a gift when he purch

Question 8

Ted died on May 3. At the time of his death, he owned a beach house valued at $250,000. On June 10, the beach house was completely destroyed by a hurricane and there was no insurance coverage. If the executor elects to use the alternate valuation date, the executor will

Accepted Answer

A)  include the beach house in the gross estate at $250,000. 
B)  take a casualty loss of $250,000 on the estate tax return. 
C)  take a casualty loss of $250,000 on the estate's income tax return. 
D)  include the beach house in the gross estate at $0. 
A)  include the beach house in the gross estate at $250,000. 
B)  take a casualty loss of $250,000 on the estate tax return. 
C)  take a casualty loss of $250,000 on the estate's income tax return. 
D)  include the beach house in the gross estate at $0.

Question 9

In 2001, Polly and Fred, brother and sister, purchased a condominium at a golf resort. Polly contributed 60% of the $200,000 cost; Fred contributed 40%. Polly dies in the current year when the condominium has a $300,000 value. How much is included in Polly's estate?

Accepted Answer

A)  $120,000 
B)  $180,000 
C)  $200,000 
D)  $300,000 
A)  $120,000 
B)  $180,000 
C)  $200,000 
D)  $300,000

Question 10

Identify which of the following statements is false.

Accepted Answer

A)  The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date. 
B)  If the alternate valuation date is elected, changes in value that occur solely because of a "mere lapse of time" usually are to be ignored. 
C)  The alternate valuation date can be elected for estate tax purposes only if the election decreases the value of the gross estate and estate tax liability (after reduction for credits). 
D)  If property is sold within 6 months of the date of death, the alternative valuation date is the date of sale. 
A)  The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date. 
B)  If the alternate valuation date is elected, changes in value that occur solely because of a "mere lapse of time" usually are to be ignored. 
C)  The alternate valuation date can be elected for estate tax purposes only if the election decreases the value of the gross estate and estate tax liability (after reduction for credits). 
D)  If property is sold within 6 months of the date of death, the alternative valuation date is the date of sale.

Question 11

Discuss the transferor provisions relating to the estate tax, and provide three examples of transactions governed by the transferor provisions.

Accepted Answer

They apply if the decedent earlier made

Question 12

Identify which of the following statements is true.

Accepted Answer

A)  The alternate valuation date can be used for estate tax purposes only if the election increases the value of the gross estate. 
B)  If the alternative valuation date is elected, changes in value that occur solely because of "mere lapse of time" usually are to be ignored. 
C)  The gross estate, a federal law concept, is generally smaller than the probate estate, a state law concept. 
D)  All of the above are false. 
A)  The alternate valuation date can be used for estate tax purposes only if the election increases the value of the gross estate. 
B)  If the alternative valuation date is elected, changes in value that occur solely because of "mere lapse of time" usually are to be ignored. 
C)  The gross estate, a federal law concept, is generally smaller than the probate estate, a state law concept. 
D)  All of the above are false.

Question 13

Four years ago, Roper transferred to his son ownership of a $100,000 life insurance policy that Roper purchased on his own life in 2000. The cash value of the policy on the transfer date was $25,000. Roper died on March 1st of this year. The amount included in Roper's gross estate due to the life insurance policy is

Accepted Answer

A)  $0. 
B)  $25,000. 
C)  $35,000. 
D)  $100,000. 
A)  $0. 
B)  $25,000. 
C)  $35,000. 
D)  $100,000.

Question 14

Administrative expenses are not deductible on the estate's income tax return.

Accepted Answer

A) True 
 B)False

Question 15

Martin transfers stock to an irrevocable trust and names himself to receive the trust income for life with the remainder interest gifted to his son. When Martin dies

Accepted Answer

A)  none of the stock will be included in Martin's estate. 
B)  the stock's value at the time of transfer to the trust will be included in Martin's estate. 
C)  the value of the stock less the present value of the income receivable by Martin will be included in Martin's estate. 
D)  the value of the stock at death will be included in Martin's estate. 
A)  none of the stock will be included in Martin's estate. 
B)  the stock's value at the time of transfer to the trust will be included in Martin's estate. 
C)  the value of the stock less the present value of the income receivable by Martin will be included in Martin's estate. 
D)  the value of the stock at death will be included in Martin's estate.

Question 16

Appraisal methods used to value real estate for estate tax purposes may include

Accepted Answer

A)  comparable sales. 
B)  reproduction cost. 
C)  capitalization of earnings. 
D)  all of the above 
A)  comparable sales. 
B)  reproduction cost. 
C)  capitalization of earnings. 
D)  all of the above

Question 17

Compare the tax treatment of administration expenses with that of the decedent's debts.

Accepted Answer

Administration expenses may be deducted

Question 18

Identify which of the following statements is true.

Accepted Answer

A)  Reversionary interests of less than 5% are includible in the gross estate. 
B)  A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer. 
C)  If a reversionary interest exceeds 3% of the property's value, the amount that is included in the estate is not the value of the reversionary interest, but rather the date-of-death value of the gifted property less the value of intervening life estates. 
D)  All of the above are false. 
A)  Reversionary interests of less than 5% are includible in the gross estate. 
B)  A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer. 
C)  If a reversionary interest exceeds 3% of the property's value, the amount that is included in the estate is not the value of the reversionary interest, but rather the date-of-death value of the gifted property less the value of intervening life estates. 
D)  All of the above are false.

Question 19

Five years ago, George and Jerry (his brother) provide $40,000 and $60,000, respectively, to purchase realty titled in the names of George and Jerry as joint tenants with right of survivorship. George dies in the current year and is survived by Jerry. At the time of George's death, the realty is valued at $300,000. What is the value of the realty in George's gross estate?

Accepted Answer

$300,000 × ($40,000

Question 20

Identify which of the following statements is true.

Accepted Answer

A)  If a marital deduction is elected on a QTIP trust transfer, property remaining in the QTIP trust is not included in the estate of the surviving spouse. 
B)  The credit for state death taxes has been replaced with a deduction for state estate taxes. 
C)  The unified credit is the only credit allowed against the estate tax. 
D)  All of the above are false. 
A)  If a marital deduction is elected on a QTIP trust transfer, property remaining in the QTIP trust is not included in the estate of the surviving spouse. 
B)  The credit for state death taxes has been replaced with a deduction for state estate taxes. 
C)  The unified credit is the only credit allowed against the estate tax. 
D)  All of the above are false.

Identify which of the following statements is true.

Identify which of the following statements is false.

Identify which of the following statements is true.

Which of the following is deductible in arriving at the amount of the taxable estate?

Ted died on May 3. At the time of his death, he owned a beach house valued at $250,000. On June 10, the beach house was completely destroyed by a hurricane and there was no insurance coverage. If the executor elects to use the alternate valuation date, the executor will

In 2001, Polly and Fred, brother and sister, purchased a condominium at a golf resort. Polly contributed 60% of the $200,000 cost; Fred contributed 40%. Polly dies in the current year when the condominium has a $300,000 value. How much is included in Polly's estate?

Identify which of the following statements is false.

Discuss the transferor provisions relating to the estate tax, and provide three examples of transactions governed by the transferor provisions.

Identify which of the following statements is true.

Administrative expenses are not deductible on the estate's income tax return.

Martin transfers stock to an irrevocable trust and names himself to receive the trust income for life with the remainder interest gifted to his son. When Martin dies

Appraisal methods used to value real estate for estate tax purposes may include

Compare the tax treatment of administration expenses with that of the decedent's debts.

Identify which of the following statements is true.

Identify which of the following statements is true.

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

Exam 13: The Estate Tax

Identify which of the following statements is true.

Identify which of the following statements is false.

Identify which of the following statements is true.

Which of the following is deductible in arriving at the amount of the taxable estate?

Ted died on May 3. At the time of his death, he owned a beach house valued at $250,000. On June 10, the beach house was completely destroyed by a hurricane and there was no insurance coverage. If the executor elects to use the alternate valuation date, the executor will

In 2001, Polly and Fred, brother and sister, purchased a condominium at a golf resort. Polly contributed 60% of the $200,000 cost; Fred contributed 40%. Polly dies in the current year when the condominium has a $300,000 value. How much is included in Polly's estate?

Identify which of the following statements is false.

Discuss the transferor provisions relating to the estate tax, and provide three examples of transactions governed by the transferor provisions.

Identify which of the following statements is true.

Administrative expenses are not deductible on the estate's income tax return.

Martin transfers stock to an irrevocable trust and names himself to receive the trust income for life with the remainder interest gifted to his son. When Martin dies

Appraisal methods used to value real estate for estate tax purposes may include

Compare the tax treatment of administration expenses with that of the decedent's debts.

Identify which of the following statements is true.

Identify which of the following statements is true.

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