Question 1

Mark dies on March 6. Which, if any, of the following items is not included in his gross estate?

Accepted Answer

A)  Interest earned before death) on City of Cleveland bonds. 
B)  Cash dividend on stock owned by Mark-declaration date was February 4, and record date was March 4. 
C)  Federal income tax refund for a prior tax year-received on March 5. 
D)  Insurance recovery on auto accident that occurred on February 25. 
E)  Insurance recovery from theft of sailboat on March 7. 
A)  Interest earned before death) on City of Cleveland bonds. 
B)  Cash dividend on stock owned by Mark-declaration date was February 4, and record date was March 4. 
C)  Federal income tax refund for a prior tax year-received on March 5. 
D)  Insurance recovery on auto accident that occurred on February 25. 
E)  Insurance recovery from theft of sailboat on March 7.

Question 2

Classify each statement appropriately.
-Payment of unpaid gift taxes.

Accepted Answer

A) Deductible from the gross estate in arriving at the taxable estate. 
B) Not deductible from the gross estate in arriving at the taxable estate. 
A) Deductible from the gross estate in arriving at the taxable estate. 
B) Not deductible from the gross estate in arriving at the taxable estate.

Question 3

In 2008, Katelyn inherited considerable property when her father died. When Katelyn dies in 2020, her estate may be able to claim a credit as to some of the estate taxes paid by her father's estate.

Accepted Answer

A) True 
 B)False

Question 4

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date?

Accepted Answer

A)  The election is made by the executor. 
B)  It can be elected even though no estate tax return i.e., Form 706) need be filed. 
C)  It can be elected only if it reduces the amount of the gross estate or reduces the estate tax liability. 
D)  Its election does not affect the income tax basis of property included in the gross estate. 
A)  The election is made by the executor. 
B)  It can be elected even though no estate tax return i.e., Form 706) need be filed. 
C)  It can be elected only if it reduces the amount of the gross estate or reduces the estate tax liability. 
D)  Its election does not affect the income tax basis of property included in the gross estate.

Question 5

For Federal estate tax purposes, the gross estate does not include property that will pass to a surviving spouse.

Accepted Answer

A) True 
 B)False

Question 6

Ling and Jiang are unrelated and equal joint tenants in a plot of land. Ling died this year. Ling's share of the land goes to:

Accepted Answer

A)  The party named in Ling's will. 
B)  Ling's surviving spouse. 
C)  Jiang under community property principles. 
D)  Jiang under a right of survivorship. 
A)  The party named in Ling's will. 
B)  Ling's surviving spouse. 
C)  Jiang under community property principles. 
D)  Jiang under a right of survivorship.

Question 7

Daniel and Mia acquired realty for $2 million with Daniel furnishing $1.5 million of the purchase price and Mia providing the balance. Title to the property is listed as: "Daniel and Mia, joint tenants with right of survivorship." This year Mia dies before Daniel when the realty is worth $4 million. How much is included in Mia's gross estate under the following circumstances?
a. Daniel and Mia are brother and sister.
b. Daniel and Mia are husband and wife.

Accepted Answer

a. $1,000,000. 25% ×

Question 8

Which, if any, of the following is not a characteristic of the Federal gift tax?

Accepted Answer

A)  A charitable deduction is available. 
B)  The alternate valuation date of § 2032 can be elected. 
C)  A disclaimer procedure may avoid the tax. 
D)  A marital deduction is available. 
A)  A charitable deduction is available. 
B)  The alternate valuation date of § 2032 can be elected. 
C)  A disclaimer procedure may avoid the tax. 
D)  A marital deduction is available.

Question 9

Concerning the Federal estate tax deduction for asset transfers to a surviving spouse:

Accepted Answer

A)  The deduction is disallowed for transfers between same-sex spouses. 
B)  A deduction is allowed for a transfer to a member of a same-sex civil union. 
C)  A deduction is allowed for life insurance proceeds paid to a surviving spouse. 
D)  All of the above statements are true. 
A)  The deduction is disallowed for transfers between same-sex spouses. 
B)  A deduction is allowed for a transfer to a member of a same-sex civil union. 
C)  A deduction is allowed for life insurance proceeds paid to a surviving spouse. 
D)  All of the above statements are true.

Question 10

Classify each statement appropriately.
-Mortgage on land included in gross estate and willed to decedent's children.

Accepted Answer

A) Deductible from the gross estate in arriving at the taxable estate. 
B) Not deductible from the gross estate in arriving at the taxable estate. 
A) Deductible from the gross estate in arriving at the taxable estate. 
B) Not deductible from the gross estate in arriving at the taxable estate.

Question 11

Mitch pays the surgeon and the hospital for his aunt's heart bypass operation. The transfer is not subject to the gift tax.

Accepted Answer

A) True 
 B)False

Question 12

Classify each of the following statements.
-Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister. Homer dies four years later, and Bernice cashes in the bond and keeps the proceeds.

Accepted Answer

A) No taxable transfer occurs. 
B) Gift tax applies. 
C) Estate tax applies. 
A) No taxable transfer occurs. 
B) Gift tax applies. 
C) Estate tax applies.

Question 13

Classify each of the following statements:
-In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Accepted Answer

A) No taxable transfer occurs. 
B) Gift tax applies. 
C) Estate tax applies. 
A) No taxable transfer occurs. 
B) Gift tax applies. 
C) Estate tax applies.

Question 14

Kim, a resident and citizen of Korea, dies during an operation at the Mayo Clinic in Rochester MN). Because Kim died in the United States, she will be subject to the Federal estate tax.

Accepted Answer

A) True 
 B)False

Question 15

Rachel owns an insurance policy on the life of Albert with Belle as the designated beneficiary. Upon Rachel's death, nothing regarding this policy is included in her gross estate.

Accepted Answer

A) True 
 B)False

Question 16

The Federal gift tax does not include a:

Accepted Answer

A)  Deduction for state gift taxes paid. 
B)  Charitable deduction. 
C)  Gift-splitting election. 
D)  Marital deduction. 
A)  Deduction for state gift taxes paid. 
B)  Charitable deduction. 
C)  Gift-splitting election. 
D)  Marital deduction.

Question 17

Manuel, a citizen and resident of Argentina, makes a gift of a ranch located in Colorado to his children. Manuel is subject to the U.S. gift tax.

Accepted Answer

A) True 
 B)False

Question 18

Classify each of the following statements.
-Cash donation to the reelection campaign of a candidate for the U.S. House.

Accepted Answer

A) No taxable transfer occurs. 
B) Gift tax applies. 
C) Estate tax applies. 
A) No taxable transfer occurs. 
B) Gift tax applies. 
C) Estate tax applies.

Question 19

Which of the following is a correct statement regarding the filing of a gift tax return Form 709)?

Accepted Answer

A)  A donor must file a Form 709 in the same year in which the gift was made. 
B)  The due date of a Form 709 is the same as the due date of the donor's Form 1040. 
C)  A Form 709 may have to be filed even though the value of the gift was less than the amount of the annual exclusion. 
D)  Melody gives her husband a new Mercedes convertible for his birthday. She must file a Form 709 to report the gift even though no gift tax results. 
A)  A donor must file a Form 709 in the same year in which the gift was made. 
B)  The due date of a Form 709 is the same as the due date of the donor's Form 1040. 
C)  A Form 709 may have to be filed even though the value of the gift was less than the amount of the annual exclusion. 
D)  Melody gives her husband a new Mercedes convertible for his birthday. She must file a Form 709 to report the gift even though no gift tax results.

Question 20

Classify each of the following independent statements:.
-Note receivable issued by a grandson and forgiven by the decedent in her will.

Accepted Answer

A) Some or all of the asset is included in the decedent's gross estate. 
B) None of the asset is included in the decedent's gross estate. 
A) Some or all of the asset is included in the decedent's gross estate. 
B) None of the asset is included in the decedent's gross estate.

Mark dies on March 6. Which, if any, of the following items is not included in his gross estate?

Classify each statement appropriately. -Payment of unpaid gift taxes.

In 2008, Katelyn inherited considerable property when her father died. When Katelyn dies in 2020, her estate may be able to claim a credit as to some of the estate taxes paid by her father's estate.

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date?

For Federal estate tax purposes, the gross estate does not include property that will pass to a surviving spouse.

Ling and Jiang are unrelated and equal joint tenants in a plot of land. Ling died this year. Ling's share of the land goes to:

Which, if any, of the following is not a characteristic of the Federal gift tax?

Concerning the Federal estate tax deduction for asset transfers to a surviving spouse:

Classify each statement appropriately. -Mortgage on land included in gross estate and willed to decedent's children.

Mitch pays the surgeon and the hospital for his aunt's heart bypass operation. The transfer is not subject to the gift tax.

Classify each of the following statements. -Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister. Homer dies four years later, and Bernice cashes in the bond and keeps the proceeds.

Classify each of the following statements: -In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Kim, a resident and citizen of Korea, dies during an operation at the Mayo Clinic in Rochester MN). Because Kim died in the United States, she will be subject to the Federal estate tax.

Rachel owns an insurance policy on the life of Albert with Belle as the designated beneficiary. Upon Rachel's death, nothing regarding this policy is included in her gross estate.

The Federal gift tax does not include a:

Manuel, a citizen and resident of Argentina, makes a gift of a ranch located in Colorado to his children. Manuel is subject to the U.S. gift tax.

Classify each of the following statements. -Cash donation to the reelection campaign of a candidate for the U.S. House.

Which of the following is a correct statement regarding the filing of a gift tax return Form 709)?

Classify each of the following independent statements:. -Note receivable issued by a grandson and forgiven by the decedent in her will.

Understanding and Working With the Federal Tax Law

The Deduction for Qualified Business Income for Pass-Through Entities

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operations, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 18: The Federal Gift and Estate Taxes

Mark dies on March 6. Which, if any, of the following items is not included in his gross estate?

Classify each statement appropriately. -Payment of unpaid gift taxes.

In 2008, Katelyn inherited considerable property when her father died. When Katelyn dies in 2020, her estate may be able to claim a credit as to some of the estate taxes paid by her father's estate.

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date?

For Federal estate tax purposes, the gross estate does not include property that will pass to a surviving spouse.

Ling and Jiang are unrelated and equal joint tenants in a plot of land. Ling died this year. Ling's share of the land goes to:

Which, if any, of the following is not a characteristic of the Federal gift tax?

Concerning the Federal estate tax deduction for asset transfers to a surviving spouse:

Classify each statement appropriately. -Mortgage on land included in gross estate and willed to decedent's children.

Mitch pays the surgeon and the hospital for his aunt's heart bypass operation. The transfer is not subject to the gift tax.

Classify each of the following statements. -Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister. Homer dies four years later, and Bernice cashes in the bond and keeps the proceeds.

Classify each of the following statements: -In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Kim, a resident and citizen of Korea, dies during an operation at the Mayo Clinic in Rochester MN). Because Kim died in the United States, she will be subject to the Federal estate tax.

Rachel owns an insurance policy on the life of Albert with Belle as the designated beneficiary. Upon Rachel's death, nothing regarding this policy is included in her gross estate.

The Federal gift tax does not include a:

Manuel, a citizen and resident of Argentina, makes a gift of a ranch located in Colorado to his children. Manuel is subject to the U.S. gift tax.

Classify each of the following statements. -Cash donation to the reelection campaign of a candidate for the U.S. House.

Which of the following is a correct statement regarding the filing of a gift tax return Form 709)?

Classify each of the following independent statements:. -Note receivable issued by a grandson and forgiven by the decedent in her will.

Understanding and Working With the Federal Tax Law

The Deduction for Qualified Business Income for Pass-Through Entities

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operations, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters