Question 1

Outline and briefly describe the estate tax computation, beginning with the gross estate.

Accepted Answer

Sum of: Property titled to dec

Question 2

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 3

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

Accepted Answer

Administration expenses may be deducted

Question 4

Betty dies on February 20, 2013. Her estate consisted of the following assets, all valued as of her date of death: Stock with a basis of $40,000 and a fair market value of $200,000
Home valued at $1,500,000 and a basis of $490,000
Cash of $70,000
Life insurance on Betty's life owned by her daughter with a $500,000 face value
What is Betty's gross estate?

Accepted Answer

A) $600,000 
B) $1,100,000 
C) $1,770,000 
D) $2,270,000 
A) $600,000 
B) $1,100,000 
C) $1,770,000 
D) $2,270,000

Question 5

Denise died April 1 and owned several bonds that paid interest March 31 and September 30. Also, she owned stock that paid dividends quarterly on March 31, June 30, September 30, and December 31. Denise's estate received the interest and dividends on the payment dates. What should be included in Denise's gross estate?

Accepted Answer

A) all interest and dividends received in the year of death 
B) only interest and dividends received prior to the date of death 
C) only interest and dividends received after the date of death 
D) none of the interest and dividends received 
A) all interest and dividends received in the year of death 
B) only interest and dividends received prior to the date of death 
C) only interest and dividends received after the date of death 
D) none of the interest and dividends received

Question 6

Mary creates and funds a revocable trust. Mary names her son to receive the income for life and her grandson to receive the property upon the son's death. What are Mary's powers with respect to the trust, and how will the trust be treated in her estate?

Accepted Answer

Since the trust is revocable,

Question 7

Which of the following is not a credit for purposes of computing the federal estate tax liability?

Accepted Answer

A) credit for gift tax paid on pre-1977 gifts 
B) credit for estate taxes paid on certain prior transfers 
C) a credit for foreign death taxes 
D) All of the above are credits for the federal estate tax. 
A) credit for gift tax paid on pre-1977 gifts 
B) credit for estate taxes paid on certain prior transfers 
C) a credit for foreign death taxes 
D) All of the above are credits for the federal estate tax.

Question 8

Identify which of the following statements is false.

Accepted Answer

A) Every grantor is entitled to a $5.25 million exemption from the GSTT in 2011. 
B) If Greg transfers assets directly to his grandson, this transaction would be an example of a direct skip. 
C) If Shaad transfers property in trust to his son, with the remainder to his grandson, at the death of the son a taxable termination will result. 
D) The GSTT is levied at a flat rate, which is higher than the top rate under the estate tax rate schedule. 
A) Every grantor is entitled to a $5.25 million exemption from the GSTT in 2011. 
B) If Greg transfers assets directly to his grandson, this transaction would be an example of a direct skip. 
C) If Shaad transfers property in trust to his son, with the remainder to his grandson, at the death of the son a taxable termination will result. 
D) The GSTT is levied at a flat rate, which is higher than the top rate under the estate tax rate schedule.

Question 9

In 2001, Alejandro buys an annuity for $100,000 that will pay Alejandro an annual amount for life with survivor benefits to his wife. When Alejandro dies in the current year, a comparable contract would have cost $81,000. What amount is included in Alejandro's gross estate?

Accepted Answer

A) $0 
B) $81,000 
C) $100,000 
D) $181,000 
A) $0 
B) $81,000 
C) $100,000 
D) $181,000

Question 10

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 11

In February of this year, Tom dies. Two years and nine months before the date of death, Tom made a gift of stock valued at $2 million. Gift taxes paid on the transfer by Tom were $435,000 after reduction for a $345,800 unified credit ($780,800 - $345,800). At the time of his death, the gifted stock was valued at $2.3 million. The amount included in Tom's gross estate from this transfer is

Accepted Answer

A) $2,000,000. 
B) $2,300,000. 
C) $435,000. 
D) none of the above. 
A) $2,000,000. 
B) $2,300,000. 
C) $435,000. 
D) none of the above.

Question 12

Lily dies early in the current year. All her property passes subject to her will, which provides that her surviving husband, Rick, is to receive all the property outright. Her will further states that any property Rick disclaims will pass instead to their children in equal shares. Lily's gross estate is about $10 million, and her Sec. 2053 deductions are very small. Rick, who is in poor health, already owns about $6 million of property. What tax issues should Rick consider with respect to the property bequeathed to him by his wife?

Accepted Answer

• Should Rick consider making a disclaim

Question 13

Identify which of the following statements is true.

Accepted Answer

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

Question 14

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.

Question 15

Compare the credits available for estate tax purposes with the credits available for gift tax purposes. What differences exist?

Accepted Answer

The four credits available for estate ta

Question 16

The payment date for estate taxes may be extended by the IRS for all of the following reasons except

Accepted Answer

A) the estate includes a 40% interest in a closely held business. 
B) the estate includes a relatively large remainder or reversionary interest. 
C) the executor of the estate shows reasonable cause. 
D) All are valid reasons. 
A) the estate includes a 40% interest in a closely held business. 
B) the estate includes a relatively large remainder or reversionary interest. 
C) the executor of the estate shows reasonable cause. 
D) All are valid reasons.

Question 17

In 2020, the basic exclusion amount for an estate tax return is $11,580,000 before taking into account necessary inflation adjustments.

Accepted Answer

A) True 
 B)False

Question 18

Guy died this year. His estate includes a closely held business interest valued at $400,000 and other property valued at $675,000. Guy's allowable Sec. 2053 and 2054 deductions total $75,000. Within three years of death, partly in hopes of qualifying his estate for the installment payment allowed under Sec. 6166 treatment, Guy made gifts of listed securities of $350,000 (at 2002 valuations)and paid no gift tax on the gift. Is Guy's estate eligible for Sec. 6166 treatment?

Accepted Answer

No, it fails the 35% test in o

Question 19

Discuss some of the factors to be considered in determining the amount of property that should pass under the marital deduction.

Accepted Answer

Except in small estates, an amount equal

Question 20

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

Accepted Answer

A) True 
 B)False

Outline and briefly describe the estate tax computation, beginning with the gross estate.

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

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

Mary creates and funds a revocable trust. Mary names her son to receive the income for life and her grandson to receive the property upon the son's death. What are Mary's powers with respect to the trust, and how will the trust be treated in her estate?

Which of the following is not a credit for purposes of computing the federal estate tax liability?

Identify which of the following statements is false.

In 2001, Alejandro buys an annuity for $100,000 that will pay Alejandro an annual amount for life with survivor benefits to his wife. When Alejandro dies in the current year, a comparable contract would have cost $81,000. What amount is included in Alejandro's gross estate?

Identify which of the following statements is true.

Identify which of the following statements is true.

Compare the credits available for estate tax purposes with the credits available for gift tax purposes. What differences exist?

The payment date for estate taxes may be extended by the IRS for all of the following reasons except

In 2020, the basic exclusion amount for an estate tax return is $11,580,000 before taking into account necessary inflation adjustments.

Discuss some of the factors to be considered in determining the amount of property that should pass under the marital deduction.

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

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

Outline and briefly describe the estate tax computation, beginning with the gross estate.

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

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

Mary creates and funds a revocable trust. Mary names her son to receive the income for life and her grandson to receive the property upon the son's death. What are Mary's powers with respect to the trust, and how will the trust be treated in her estate?

Which of the following is not a credit for purposes of computing the federal estate tax liability?

Identify which of the following statements is false.

In 2001, Alejandro buys an annuity for $100,000 that will pay Alejandro an annual amount for life with survivor benefits to his wife. When Alejandro dies in the current year, a comparable contract would have cost $81,000. What amount is included in Alejandro's gross estate?

Identify which of the following statements is true.

Identify which of the following statements is true.

Compare the credits available for estate tax purposes with the credits available for gift tax purposes. What differences exist?

The payment date for estate taxes may be extended by the IRS for all of the following reasons except

In 2020, the basic exclusion amount for an estate tax return is $11,580,000 before taking into account necessary inflation adjustments.

Discuss some of the factors to be considered in determining the amount of property that should pass under the marital deduction.

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

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