Question 1

The estate tax return is due, ignoring extensions, 3- 1/2 months after the decedent's date of death.

Accepted Answer

A) True 
 B)False  False

Question 2

Following are the fair market values of Wilma's assets at her date of death: $$\begin{array} { | l | r | } 
\hline \text { Personal effects and jewelry } & \$ 150,000 \
\hline \text { Land which Wilma bought and held as a joint } \
\text { tenant with right of survivorship with her sister } & 800,000 \
\hline
\end{array}$$ The executor of Wilma's estate did not elect the alternate valuation date. The amount includible in W gross estate is

Accepted Answer

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

Question 3

Identify which of the following statements is true.

Accepted Answer

A)  Qualified disclaimers are not available for estate planning purposes. 
B)  Special use valuation is available for farmland to help alleviate liquidity problems. 
C)  The transferee is liable for the generation- skipping transfer tax (GSTT) in the case of a direct skip. 
D)  All of the above are false. 
A)  Qualified disclaimers are not available for estate planning purposes. 
B)  Special use valuation is available for farmland to help alleviate liquidity problems. 
C)  The transferee is liable for the generation- skipping transfer tax (GSTT) in the case of a direct skip. 
D)  All of the above are false. B

Question 4

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

Question 5

List the various categories of estate tax deductions, and compare them with the categories of gift tax deductions. What differences exist?

Accepted Answer

Estate tax deductions are as follows: ma

Question 6

Proceeds of a life insurance policy payable to the estate's executor, as the estate's representative, are

Accepted Answer

A)  includible in the decedent's gross estate only if the policy was taken out within three years of the insured's death. 
B)  always includible in the decedent's gross estate. 
C)  includible in the decedent's gross estate only if the premiums had been paid by the insured. 
D)  never includible in the decedent's gross estate. 
A)  includible in the decedent's gross estate only if the policy was taken out within three years of the insured's death. 
B)  always includible in the decedent's gross estate. 
C)  includible in the decedent's gross estate only if the premiums had been paid by the insured. 
D)  never includible in the decedent's gross estate.

Question 7

Julian died on November 1 and owned 100 shares of a New York Stock Exchange stock. The stock traded at a high of 100 and a low of 98 on November 1. It opened at 98 and closed at 100. On Julian's estate tax return, what will the per- share and total value of the stock be?

Accepted Answer

($100 + 98)/2 = $99

Question 8

The value of stock that is not publicly traded may be determined by considering

Accepted Answer

A)  earning capacity. 
B)  the nature and history of the business. 
C)  dividend- paying capacity. 
D)  all of the above 
A)  earning capacity. 
B)  the nature and history of the business. 
C)  dividend- paying capacity. 
D)  all of the above

Question 9

Identify which of the following statements is true.

Accepted Answer

A)  The estate tax return is due, ignoring extensions, 12 months after the decedent's date of death. 
B)  Estate taxes must be paid when the return is filed, including any extensions. 
C)  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. 
D)  All of the above are false. 
A)  The estate tax return is due, ignoring extensions, 12 months after the decedent's date of death. 
B)  Estate taxes must be paid when the return is filed, including any extensions. 
C)  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. 
D)  All of the above are false.

Question 10

Identify which of the following statements is true.

Accepted Answer

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

Question 11

When computing the federal estate tax liability in 2018, which of the following taxable estates (not tentative tax) would the unified credit for the current year eliminate all of the tax is

Accepted Answer

A)  $17,800,800. 
B)  $12,000,000. 
C)  $11,180,000. 
D)  $15,555,800. 
A)  $17,800,800. 
B)  $12,000,000. 
C)  $11,180,000. 
D)  $15,555,800.

Question 12

Identify which of the following statements is false.

Accepted Answer

A)  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. 
B)  The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date. 
C)  If property is sold within 6 months of the date of death, the alternative valuation date is the date of sale. 
D)  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). 
A)  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. 
B)  The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date. 
C)  If property is sold within 6 months of the date of death, the alternative valuation date is the date of sale. 
D)  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).

Question 13

The following items were discovered in reviewing materials for John's estate tax return:
(1) Two years ago, John sold stock to his son, Patrick, for $30,000. At the date of sale, the stock had a value of $6 The value of the stocks at John's death was $90,000.
(2) John owned a beach house, worth $500,000, with his sister, Amber, who paid for it.
(3) John's home was held in a tenancy by the entirety with his wife, Julia. Julia paid for the house, which had a v
$300,000 on the date of his death.
(4) John's clothing and other personal belongings are worth $3,700 on the date of his death. What amount is included in John's estate?

Accepted Answer

@#IMG-DLM& Items (1) and (2) a

Question 14

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 15

Yoyo Corporation maintains a retirement plan for its employees to which it makes 70% of the contributions and the employees make 30%. Gary dies this year and is employed at the time of his death. Gary's spouse will receive an annuity valued at $600,000 from the retirement plan. How much of the annuity will be included in Gary's gross estate?

Accepted Answer

A)  $180,000 
B)  $600,000 
C)  $420,000 
D)  $0 
A)  $180,000 
B)  $600,000 
C)  $420,000 
D)  $0

Question 16

Praneh Patel, a widower, died in March of the current year. His gross estate is $11,000,000, and at the time of his death, he owed debts of $40,000. His will made a charitable bequest of $280,000 and left the rest of his property to his children. His administrative expenses are estimated to be about $55,000. What tax issues should the estate's CPA consider when preparing Praneh's estate tax return and his estate's income tax return?

Accepted Answer

• What deductions will Praneh's estate r

Question 17

Identify which of the following statements is true.

Accepted Answer

A)  If a transferor retains voting rights in stock of a controlled corporation for the transferor's lifetime, the stock is included in the transferor's gross estate. 
B)  All gift taxes paid by the decedent on gifts made within five years of the date of death must be included in the gross estate. 
C)  The gross- up rule applies to the gift tax triggered by a gift during a three- year look- forward period. 
D)  All of the above are false. 
A)  If a transferor retains voting rights in stock of a controlled corporation for the transferor's lifetime, the stock is included in the transferor's gross estate. 
B)  All gift taxes paid by the decedent on gifts made within five years of the date of death must be included in the gross estate. 
C)  The gross- up rule applies to the gift tax triggered by a gift during a three- year look- forward period. 
D)  All of the above are false.

Question 18

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

The answer of Yee made $3 million of taxable gifts...

Question 19

At Mark's death, Mark owed a debt of $40,000 plus $2,000 of accrued interest. Mark's funeral expenses were
$5,000, and Mark's charge card had a balance due of $400. The expected administration costs for the estate are
$2,000. Assume the estate will owe no income taxes in the next few years and that the taxable estate is expected to be in excess of $1 million. What amount should the estate deduct?

Accepted Answer

All the expenses are deductible: $40,000

Question 20

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

The answer of In 1997, Barry and Fred provide $20,000...

The estate tax return is due, ignoring extensions, 3- 1/2 months after the decedent's date of death.

Identify which of the following statements is true.

List the various categories of estate tax deductions, and compare them with the categories of gift tax deductions. What differences exist?

Proceeds of a life insurance policy payable to the estate's executor, as the estate's representative, are

Julian died on November 1 and owned 100 shares of a New York Stock Exchange stock. The stock traded at a high of 100 and a low of 98 on November 1. It opened at 98 and closed at 100. On Julian's estate tax return, what will the per- share and total value of the stock be?

The value of stock that is not publicly traded may be determined by considering

Identify which of the following statements is true.

Identify which of the following statements is true.

When computing the federal estate tax liability in 2018, which of the following taxable estates (not tentative tax) would the unified credit for the current year eliminate all of the tax is

Identify which of the following statements is false.

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?

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

U.S. Taxation of Foreign-Related Transactions

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Exam 13: The Estate Tax

The estate tax return is due, ignoring extensions, 3- 1/2 months after the decedent's date of death.

Identify which of the following statements is true.

List the various categories of estate tax deductions, and compare them with the categories of gift tax deductions. What differences exist?

Proceeds of a life insurance policy payable to the estate's executor, as the estate's representative, are

Julian died on November 1 and owned 100 shares of a New York Stock Exchange stock. The stock traded at a high of 100 and a low of 98 on November 1. It opened at 98 and closed at 100. On Julian's estate tax return, what will the per- share and total value of the stock be?

The value of stock that is not publicly traded may be determined by considering

Identify which of the following statements is true.

Identify which of the following statements is true.

When computing the federal estate tax liability in 2018, which of the following taxable estates (not tentative tax) would the unified credit for the current year eliminate all of the tax is

Identify which of the following statements is false.

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?

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

U.S. Taxation of Foreign-Related Transactions

Filters