Question 1

Which of the following is a completed gift?

Accepted Answer

A)  Greta transfers $50,000 to a revocable trust benefiting her children Hans and Julio. 
B)  Mike changes the beneficiary of his policy to Meredith. 
C)  Juan purchases a ski chalet using his own funds, but listing Penelope as a joint owner. 
D)  Horatio transfers $60,000 to a bank account with Hazel. Hazel does not contribute any money to the account. 
A)  Greta transfers $50,000 to a revocable trust benefiting her children Hans and Julio. 
B)  Mike changes the beneficiary of his policy to Meredith. 
C)  Juan purchases a ski chalet using his own funds, but listing Penelope as a joint owner. 
D)  Horatio transfers $60,000 to a bank account with Hazel. Hazel does not contribute any money to the account.

Question 2

Phil transfers $50,000 to a revocable trust benefiting his son, Josh. The transfer is a taxable gift.

Accepted Answer

A) True 
 B)False

Question 3

A Sec. "2503(c) trust"

Accepted Answer

A)  requires distribution of trust assets to the beneficiary at age 21. 
B)  is a discretionary trust for a beneficiary of any age. 
C)  is intended for beneficiaries over the age of 20. 
D)  can be formed only by the parent(s) of the beneficiaries. 
A)  requires distribution of trust assets to the beneficiary at age 21. 
B)  is a discretionary trust for a beneficiary of any age. 
C)  is intended for beneficiaries over the age of 20. 
D)  can be formed only by the parent(s) of the beneficiaries.

Question 4

Calvin transfers land to a trust. Calvin retains the right to the income from the land for the rest of his life. Upon his death, the land is to be transferred to his daughter, Melissa. Calvin's interest is

Accepted Answer

A)  a remainder interest. 
B)  a reversionary interest. 
C)  a term certain. 
D)  a life estate. 
A)  a remainder interest. 
B)  a reversionary interest. 
C)  a term certain. 
D)  a life estate.

Which of the following is a completed gift?

Phil transfers $50,000 to a revocable trust benefiting his son, Josh. The transfer is a taxable gift.

A Sec. "2503(c) trust"

Calvin transfers land to a trust. Calvin retains the right to the income from the land for the rest of his life. Upon his death, the land is to be transferred to his daughter, Melissa. Calvin's interest is

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 Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Tax Deductions and Travel Expenses for Employees and Self-Employed Individuals

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Exam 12: The Gift Tax

Which of the following is a completed gift?

Phil transfers $50,000 to a revocable trust benefiting his son, Josh. The transfer is a taxable gift.

A Sec. "2503(c) trust"

Calvin transfers land to a trust. Calvin retains the right to the income from the land for the rest of his life. Upon his death, the land is to be transferred to his daughter, Melissa. Calvin's interest is

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 Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Tax Deductions and Travel Expenses for Employees and Self-Employed Individuals

Filters