Question 1

The gift tax is imposed on intervivos (lifetime)transfers.

Accepted Answer

A) True 
 B)False

Question 2

Tracey is unmarried and owns $7 million in stock and bonds.What is the result if Tracey dies this year and leaves all of her property to a qualified charity?

Accepted Answer

A)  Tracey's gross estate will be zero. 
B)  Tracey's estate tax basis will be zero. 
C)  Tracey's taxable estate will be zero. 
D)  Tracey's estate will have a tentative estate tax of zero. 
E)  None of the choices are correct. 
A)  Tracey's gross estate will be zero. 
B)  Tracey's estate tax basis will be zero. 
C)  Tracey's taxable estate will be zero. 
D)  Tracey's estate will have a tentative estate tax of zero. 
E)  None of the choices are correct.

Question 3

The gift-splitting election only applies to gifts made by taxpayers who reside in community property states.

Accepted Answer

A) True 
 B)False

Question 4

The testamentary transfer of property to a qualified charity is deductible in calculating the taxable estate without any ceiling limitation.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a completed taxable gift?

Accepted Answer

A)  $20,000 in cash contributed to the committee to reelect Senator BlowHard. 
B)  $15,000 in cash given directly to Valley Hospital for the care of a neighbor who was in an auto accident. 
C)  $18,000 in cash given directly to a needy student to pay for college tuition. 
D)  $55,000 in cash transferred to a former spouse under a written property settlement shortly after a divorce. 
E)  None of the choices is a completed taxable gift. 
A)  $20,000 in cash contributed to the committee to reelect Senator BlowHard. 
B)  $15,000 in cash given directly to Valley Hospital for the care of a neighbor who was in an auto accident. 
C)  $18,000 in cash given directly to a needy student to pay for college tuition. 
D)  $55,000 in cash transferred to a former spouse under a written property settlement shortly after a divorce. 
E)  None of the choices is a completed taxable gift.

Question 6

The probate estate consists of all property owned by the decedent that is excluded from the gross estate.

Accepted Answer

A) True 
 B)False

Question 7

A gift tax return does not need to be filed unless the taxpayer has made current gifts in excess of the applicable credit.

Accepted Answer

A) True 
 B)False

Question 8

Isaac is married and Isaac and his spouse agree that they want to transfer the maximum amount of cash to each of their four children and six grandchildren.How much cash in total can Isaac and his spouse transfer to his children and grandchildren each year without creating any taxable gifts?

Accepted Answer

$280,000
Isaac and his spouse can gift a

Question 9

Christopher's residence was damaged by a storm during the administration of his estate.Christopher's executor paid $120,000 to repair the residence after the storm.Which of the following is a true statement?

Accepted Answer

A)  A casualty loss of $120,000 can be deducted on Christopher's final individual income tax return. 
B)  The casualty loss deduction is limited to the loss in excess of 10 percent of Christopher's AGI. 
C)  Christopher's executor has the option of deducting a loss of $120,000 on the estate tax return or on the estate's income tax return. 
D)  No casualty loss deduction is available for calculating the estate tax. 
E)  None of the choices are true. 
A)  A casualty loss of $120,000 can be deducted on Christopher's final individual income tax return. 
B)  The casualty loss deduction is limited to the loss in excess of 10 percent of Christopher's AGI. 
C)  Christopher's executor has the option of deducting a loss of $120,000 on the estate tax return or on the estate's income tax return. 
D)  No casualty loss deduction is available for calculating the estate tax. 
E)  None of the choices are true.

Question 10

A present interest is the right to currently enjoy property or receive income payments from property.

Accepted Answer

A) True 
 B)False

Question 11

At her death,Tricia owned a life insurance policy on her life that paid her daughter $500,000 upon her death.The policy was only valued at $25,000 prior to Tricia's death.What amount,if any,is included in Tricia's gross estate?

Accepted Answer

A)  $500,000. 
B)  $25,000. 
C)  $25,000 if Tricia transferred ownership of the policy within three years of her date of death. 
D)  zero-life insurance proceeds due to the death of the decedent are not included in the decedent's gross estate. 
E)  zero if Tricia's daughter refused to accept the proceeds. 
A)  $500,000. 
B)  $25,000. 
C)  $25,000 if Tricia transferred ownership of the policy within three years of her date of death. 
D)  zero-life insurance proceeds due to the death of the decedent are not included in the decedent's gross estate. 
E)  zero if Tricia's daughter refused to accept the proceeds.

Question 12

Property is included in the gross estate at the value a willing buyer would pay a willing seller,neither being under any compulsion to buy or to sell,and both having reasonable knowledge of the relevant facts.

Accepted Answer

A) True 
 B)False

Question 13

The executor of Isabella's estate incurred administration expenses of $32,000 and paid $5,000 in funeral expenses.The executor charged the estate for $24,000 in fees.What is the maximum amount Isabella's estate can deduct in computing the adjusted gross estate?

Accepted Answer

A)  $32,000. 
B)  $37,000. 
C)  $56,000. 
D)  $61,000. 
E)  None of the choices are correct. 
A)  $32,000. 
B)  $37,000. 
C)  $56,000. 
D)  $61,000. 
E)  None of the choices are correct.

Question 14

Last year Brandon opened a savings account with a deposit of $45,000.The account was in the name of Brandon and Melanie,joint tenancy with the right of survivorship.Melanie did not contribute to the account,but this year she withdrew $18,000.Has Brandon made a taxable gift to Melanie,and if so,in what amount?

Accepted Answer

$4,000
No gift was made at the time of t

Question 15

This year Don and his son purchased real estate for an investment.The price of the property was $500,000,and the title named Don and his son as joint tenants with the right of survivorship.Don provided $320,000 of the purchase price and his son provided the remaining $180,000.Has Don made a taxable gift and,if so,in what amount?

Accepted Answer

A)  Don has made a taxable gift of $236,000. 
B)  Don has made a taxable gift of $70,000. 
C)  Don has made a taxable gift of $22,000. 
D)  Don has made a taxable gift of $56,000. 
E)  None of the choices are correct-Don did not make a taxable gift. 
A)  Don has made a taxable gift of $236,000. 
B)  Don has made a taxable gift of $70,000. 
C)  Don has made a taxable gift of $22,000. 
D)  Don has made a taxable gift of $56,000. 
E)  None of the choices are correct-Don did not make a taxable gift.

Question 16

A serial gift strategy consists of arranging a trust to maximize the value of the applicable credit.

Accepted Answer

A) True 
 B)False

Question 17

This year,Brent by himself purchased season baseball tickets in the exclusive sky club.The price of the tickets was $60,000,and Brent divided the tickets equally with his two brothers (Brent gave one-third of the tickets to each brother).Has Brent made a taxable gift and,if so,in what amount?

Accepted Answer

A)  Brent made a taxable gift of $46,000. 
B)  Brent made two taxable gifts of $17,000 each. 
C)  Brent transferred the tickets for love and affection so no gift tax is imposed. 
D)  Brent made two taxable gifts of $6,000. 
E)  None of the choices are correct. 
A)  Brent made a taxable gift of $46,000. 
B)  Brent made two taxable gifts of $17,000 each. 
C)  Brent transferred the tickets for love and affection so no gift tax is imposed. 
D)  Brent made two taxable gifts of $6,000. 
E)  None of the choices are correct.

Question 18

Joshua and David purchased real property for $500,000 as equal tenants in common.Although they are listed as equal co-owners,Joshua was only able to provide $200,000 of the purchase price.David treated the additional $100,000 of his contribution to the purchase price as a gift to Joshua.If the property is worth $2.5 million at Joshua's death,what amount would be included in Joshua's estate?

Accepted Answer

$1.25 million
If the title to

Question 19

The probate estate will include the total value of all real property owned by the decedent at the time of death regardless of whether the decedent co-owned the property as tenants in common or as joint tenants with the right of survivorship.

Accepted Answer

A) True 
 B)False

Question 20

The estate and gift taxes share several common features.Which of the following characteristics are common to both the estate and gift taxes?

Accepted Answer

A)  An applicable credit and a marital deduction. 
B)  A charitable deduction and an annual exclusion. 
C)  A gift-splitting election and a deduction for income taxes paid by the fiduciary. 
D)  A charitable deduction and the unused spousal exemption equivalent. 
E)  All of these choices are characteristics common to both the gift and the estate tax. 
A)  An applicable credit and a marital deduction. 
B)  A charitable deduction and an annual exclusion. 
C)  A gift-splitting election and a deduction for income taxes paid by the fiduciary. 
D)  A charitable deduction and the unused spousal exemption equivalent. 
E)  All of these choices are characteristics common to both the gift and the estate tax.

The gift tax is imposed on intervivos (lifetime)transfers.

Tracey is unmarried and owns $7 million in stock and bonds.What is the result if Tracey dies this year and leaves all of her property to a qualified charity?

The gift-splitting election only applies to gifts made by taxpayers who reside in community property states.

The testamentary transfer of property to a qualified charity is deductible in calculating the taxable estate without any ceiling limitation.

Which of the following is a completed taxable gift?

The probate estate consists of all property owned by the decedent that is excluded from the gross estate.

A gift tax return does not need to be filed unless the taxpayer has made current gifts in excess of the applicable credit.

Isaac is married and Isaac and his spouse agree that they want to transfer the maximum amount of cash to each of their four children and six grandchildren.How much cash in total can Isaac and his spouse transfer to his children and grandchildren each year without creating any taxable gifts?

Christopher's residence was damaged by a storm during the administration of his estate.Christopher's executor paid $120,000 to repair the residence after the storm.Which of the following is a true statement?

A present interest is the right to currently enjoy property or receive income payments from property.

At her death,Tricia owned a life insurance policy on her life that paid her daughter $500,000 upon her death.The policy was only valued at $25,000 prior to Tricia's death.What amount,if any,is included in Tricia's gross estate?

Property is included in the gross estate at the value a willing buyer would pay a willing seller,neither being under any compulsion to buy or to sell,and both having reasonable knowledge of the relevant facts.

The executor of Isabella's estate incurred administration expenses of $32,000 and paid $5,000 in funeral expenses.The executor charged the estate for $24,000 in fees.What is the maximum amount Isabella's estate can deduct in computing the adjusted gross estate?

A serial gift strategy consists of arranging a trust to maximize the value of the applicable credit.

This year,Brent by himself purchased season baseball tickets in the exclusive sky club.The price of the tickets was $60,000,and Brent divided the tickets equally with his two brothers (Brent gave one-third of the tickets to each brother).Has Brent made a taxable gift and,if so,in what amount?

The probate estate will include the total value of all real property owned by the decedent at the time of death regardless of whether the decedent co-owned the property as tenants in common or as joint tenants with the right of survivorship.

The estate and gift taxes share several common features.Which of the following characteristics are common to both the estate and gift taxes?

Business Income,Deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Neorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

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Exam 14: Transfer Taxes and Wealth Planning

The gift tax is imposed on intervivos (lifetime)transfers.

Tracey is unmarried and owns $7 million in stock and bonds.What is the result if Tracey dies this year and leaves all of her property to a qualified charity?

The gift-splitting election only applies to gifts made by taxpayers who reside in community property states.

The testamentary transfer of property to a qualified charity is deductible in calculating the taxable estate without any ceiling limitation.

Which of the following is a completed taxable gift?

The probate estate consists of all property owned by the decedent that is excluded from the gross estate.

A gift tax return does not need to be filed unless the taxpayer has made current gifts in excess of the applicable credit.

Isaac is married and Isaac and his spouse agree that they want to transfer the maximum amount of cash to each of their four children and six grandchildren.How much cash in total can Isaac and his spouse transfer to his children and grandchildren each year without creating any taxable gifts?

Christopher's residence was damaged by a storm during the administration of his estate.Christopher's executor paid $120,000 to repair the residence after the storm.Which of the following is a true statement?

A present interest is the right to currently enjoy property or receive income payments from property.

At her death,Tricia owned a life insurance policy on her life that paid her daughter $500,000 upon her death.The policy was only valued at $25,000 prior to Tricia's death.What amount,if any,is included in Tricia's gross estate?

Property is included in the gross estate at the value a willing buyer would pay a willing seller,neither being under any compulsion to buy or to sell,and both having reasonable knowledge of the relevant facts.

The executor of Isabella's estate incurred administration expenses of $32,000 and paid $5,000 in funeral expenses.The executor charged the estate for $24,000 in fees.What is the maximum amount Isabella's estate can deduct in computing the adjusted gross estate?

A serial gift strategy consists of arranging a trust to maximize the value of the applicable credit.

This year,Brent by himself purchased season baseball tickets in the exclusive sky club.The price of the tickets was $60,000,and Brent divided the tickets equally with his two brothers (Brent gave one-third of the tickets to each brother).Has Brent made a taxable gift and,if so,in what amount?

The probate estate will include the total value of all real property owned by the decedent at the time of death regardless of whether the decedent co-owned the property as tenants in common or as joint tenants with the right of survivorship.

The estate and gift taxes share several common features.Which of the following characteristics are common to both the estate and gift taxes?

Business Income,Deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Neorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

Filters