At the time of her death, Amber owns property worth $5,000,000. Other information regarding her affairs is as follows. $\begin{array}{llr} \text { Unpaid pledge to the building fund of her church } &\$50,000\\ \text { College graduation gift she had promised her grandson} &20,000\\ \text { Local property taxes owed (accued prior to death) } &100,000\\ \text { Casualty loss to uninsured vacati on home (fire occurred one month before death) } &500,000\\ \text { Mortgage owed on personal residence } &800,000\\ \end{array}$ ? All of these items (except the casualty loss) were paid by her estate, and none were deducted on Form 1041 (income tax return of the estate). What is Amber's taxable estate?

$4,050,000. $5,000,000 (gross estate) -

Exam 18: The Federal Gift and Estate Taxes

At the time of her death, Megan was involved in the following. ∙ Owned an insurance policy on the life of her father with a replacement cost of $250,000 and maturity value of $800,000. The designated beneficiary of the policy is Megan's estate. ∙ Was an equal tenant in common with her brother in a tract of land worth $800,000. The land was inherited from their grandmother 10 years ago when it had a value of $200,000. ∙ Was a joint tenant with her two sisters in stock worth $1,500,000. The stock was inherited from their grandmother 10 years ago when it had a value of $500,000. As to these transactions, Megan's gross estate must include:

(Multiple Choice)

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Question 61

In 2016, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $140,000 ($28,000 × 5 years).

(True/False)

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Question 62

In contrasting the computation of the Federal gift and estate taxes, are past taxable gifts handled in the same fashion? Explain.

(Essay)

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Question 63

Becky made taxable gifts in 2013, 2014, and 2016. In computing the gift tax on the 2016 gift, she must consider all of the prior taxable gifts.

(True/False)

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Question 64

If the value of the gross estate is lower on the alternate valuation date than on the date of death, the date of death valuation cannot be used.

(True/False)

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Question 65

In which, if any, of the following independent situations has Jean made a gift?

(Multiple Choice)

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Question 66

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Clarence pays the medical providers (e.g., physicians, hospital) for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

(Multiple Choice)

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Question 67

Some states impose inheritance taxes, but the Federal tax system does not.

(True/False)

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Question 68

Lily pays for her grandson's college expenses. Under what conditions might such payments not be a gift?

(Essay)

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Question 69

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Election to split gifts (§ 2513)

(Multiple Choice)

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Question 70

At one point, the tax rates applicable to transfers by gift were different than those applying to transfers by death.

(True/False)

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Question 71

At the time of her death, Amber owns property worth $5,000,000. Other information regarding her affairs is as follows. Unpaid pledge to the building fund of her church \5 0,000 College graduation gift she had promised her grandson 20,000 Local property taxes owed (accued prior to death) 100,000 Casualty loss to uninsured vacati on home (fire occurred one month before death) 500,000 Mortgage owed on personal residence 800,000 ? All of these items (except the casualty loss) were paid by her estate, and none were deducted on Form 1041 (income tax return of the estate). What is Amber's taxable estate?

(Essay)

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Question 72

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Meg gives her 18-year-old son money for his college tuition and living expenses (e.g., room and board).

(Multiple Choice)

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Question 73

At the time of his death, Lance held a life estate in the LM Trust. Under which of the following circumstances will the LM Trust not be included in his gross estate?

(Multiple Choice)

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Question 74

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Tenancy in common

(Multiple Choice)

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Question 75

Lyle and Kelly are brother and sister. Using his funds, Lyle purchases land, listing title as: "Lyle and Kelly, joint tenants with right of survivorship." If Kelly dies first, none of the land is included in her gross estate.

(True/False)

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Question 76

Daniel's will provides that all of his property passes to a trust, life estate to his wife, remainder to charity. If Daniel's executor does not make a QTIP election, the use of the marital deduction is not possible.

(True/False)

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Question 77

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace predeceases Nadine.

(Multiple Choice)

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Question 78

In the past five years, the amount of the unified tax credit always has been the same for both transfers by gift and transfers by death.

(True/False)

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Question 79

Death does not defeat a deceased spouse's interest in a tenancy by the entirety.

(True/False)

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Question 80

Showing 61 - 80 of 177

In 2016, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $140,000 ($28,000 × 5 years).

In contrasting the computation of the Federal gift and estate taxes, are past taxable gifts handled in the same fashion? Explain.

Becky made taxable gifts in 2013, 2014, and 2016. In computing the gift tax on the 2016 gift, she must consider all of the prior taxable gifts.

If the value of the gross estate is lower on the alternate valuation date than on the date of death, the date of death valuation cannot be used.

In which, if any, of the following independent situations has Jean made a gift?

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Clarence pays the medical providers (e.g., physicians, hospital) for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Some states impose inheritance taxes, but the Federal tax system does not.

Lily pays for her grandson's college expenses. Under what conditions might such payments not be a gift?

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Election to split gifts (§ 2513)

At one point, the tax rates applicable to transfers by gift were different than those applying to transfers by death.

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Meg gives her 18-year-old son money for his college tuition and living expenses (e.g., room and board).

At the time of his death, Lance held a life estate in the LM Trust. Under which of the following circumstances will the LM Trust not be included in his gross estate?

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Tenancy in common

Lyle and Kelly are brother and sister. Using his funds, Lyle purchases land, listing title as: "Lyle and Kelly, joint tenants with right of survivorship." If Kelly dies first, none of the land is included in her gross estate.

Daniel's will provides that all of his property passes to a trust, life estate to his wife, remainder to charity. If Daniel's executor does not make a QTIP election, the use of the marital deduction is not possible.

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace predeceases Nadine.

In the past five years, the amount of the unified tax credit always has been the same for both transfers by gift and transfers by death.

Death does not defeat a deceased spouse's interest in a tenancy by the entirety.

Understanding and Working With the Federal Tax Law

Corporations Introduction and Operating Rules

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Corporations Organization and Capital Structure

Corporations Earnings Profits and Dividend Distributions

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