Question 1

Georgia owns an insurance policy on the life of Jake,with Scarlet as the designated beneficiary.Upon Scarlet's prior death,no transfer tax consequences result.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a characteristic of both the Federal gift tax and the Federal estate tax?

Accepted Answer

A) A deduction for state death taxes may be available. 
B) A charitable deduction is available. 
C) A marital deduction is available. 
D) An exclusion amount is available in computing the tax. 
E) None of the above. 
A) A deduction for state death taxes may be available. 
B) A charitable deduction is available. 
C) A marital deduction is available. 
D) An exclusion amount is available in computing the tax. 
E) None of the above.

Question 3

Classify each statement appropriately.
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.
-Transportation cost for decedent and surviving son to site of burial.

Accepted Answer

The answer of Classify each statement appropriately.
a.Deductible from the gross...

Question 4

A surviving spouse's share of the community property is not included in the deceased spouse's gross estate.

Accepted Answer

A) True 
 B)False

Question 5

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:

Accepted Answer

A) $250,000. 
B) $1,150,000. 
C) $1,400,000. 
D) $2,150,000. 
E) None of the above. 
A) $250,000. 
B) $1,150,000. 
C) $1,400,000. 
D) $2,150,000. 
E) None of the above.

Question 6

Under his grandfather's will,Tad is entitled to receive shares of Kroger Corporation.For Federal tax purposes,Tad is allowed to disclaim some of these shares and accept the others.

Accepted Answer

A) True 
 B)False

Question 7

In community property states,not all property acquired after marriage by either spouse is community property.

Accepted Answer

A) True 
 B)False

Question 8

Classify each statement appearing below.
a.No taxable transfer occurs
b.Gift tax applies 
c.Estate tax applies
-​Under her father's will,Faith is to receive 10,000 shares of GE common stock.Eight months after her father's death,Faith disclaims the 10,000 shares.

Accepted Answer

The answer of Classify each statement appearing below.
a.No taxable transfer...

Question 9

Classify each statement appropriately.
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.
-Administration expenses attributable to handling the surviving spouse's share of the community property.

Accepted Answer

The answer of Classify each statement appropriately.
a.Deductible from the gross...

Question 10

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. 
E) None of the above. 
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. 
E) None of the above.

Question 11

In determining whether a dividend issued on stock held by a decedent is included in the gross estate,the record date (rather than the declaration or payment dates) controls.

Accepted Answer

A) True 
 B)False

Question 12

In 2005,Noah and Kelly acquire real estate for $2,000,000,with Noah furnishing $400,000 of the purchase price and Kelly providing the balance.Title to the property is listed as: "Noah and Kelly,equal tenants in common." Noah dies first in 2015,when the real estate is worth $4,000,000.
a.Were there any tax consequences in 2005? Explain.
a.and
b.
How much,as to the real estate,is included in Noah's gross estate?
b. ,would it make any difference whether Noah and Kelly are brother and sister or husband and wife?
c.
As to parts

Accepted Answer

​
 a.When the tenancy was created,Kelly

Question 13

A lifetime transfer that is supported by full and adequate consideration is not a gift.

Accepted Answer

A) True 
 B)False

Question 14

The Federal gift and estate taxes were restructured in 1976 into the unified transfer tax.The objective of the change was to eliminate the tax difference between transfers during life (gift tax) and at death (estate tax).Does this uniformity of treatment currently exist? In this regard,comment on the following differences between the two taxes.
a.Applicable unified transfer tax credit.
b.Applicable unified transfer tax rates.
c.Availability of the charitable and marital deductions.
d.Availability of the annual exclusion.

Accepted Answer

​
 a.For 2011 to 2015,the credit for all

Question 15

If a donor has a fiscal year of July 1-June 30 for income tax purposes,this does not change the normal filing date for Form 709.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

At the time of his prior death,Raul owned a residence with his wife,Manuela,as joint tenants.The residence was purchased by Manuela ten years ago at a cost of $300,000 and has a fair market value of $1.4 million.Raul's estate will be allowed no marital deduction as to the property.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

The answer of Classify each statement appropriately.
a.Deductible from the gross...

Question 19

Brad holds a life estate in a trust created by his father,while Scott holds a life estate in a trust created by himself.Upon their deaths,Scott must include the trust in his gross estate,while Brad need not include his trust.Why?

Accepted Answer

Under the operation of § 2036,Scott has

Question 20

Sam purchases a U.S.savings bond which he registers as follows: "Sam,payable to Don upon Sam's death." A gift occurs when Sam purchases the bond.

Accepted Answer

A) True 
 B)False

Exam 27: Family Tax Planning

Georgia owns an insurance policy on the life of Jake,with Scarlet as the designated beneficiary.Upon Scarlet's prior death,no transfer tax consequences result.

Which of the following is not a characteristic of both the Federal gift tax and the Federal estate tax?

Classify each statement appropriately. 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. -Transportation cost for decedent and surviving son to site of burial.

A surviving spouse's share of the community property is not included in the deceased spouse's gross estate.

Under his grandfather's will,Tad is entitled to receive shares of Kroger Corporation.For Federal tax purposes,Tad is allowed to disclaim some of these shares and accept the others.

In community property states,not all property acquired after marriage by either spouse is community property.

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -​Under her father's will,Faith is to receive 10,000 shares of GE common stock.Eight months after her father's death,Faith disclaims the 10,000 shares.

Classify each statement appropriately. 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. -Administration expenses attributable to handling the surviving spouse's share of the community property.

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

In determining whether a dividend issued on stock held by a decedent is included in the gross estate,the record date (rather than the declaration or payment dates) controls.

A lifetime transfer that is supported by full and adequate consideration is not a gift.

If a donor has a fiscal year of July 1-June 30 for income tax purposes,this does not change the normal filing date for Form 709.

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

At the time of his prior death,Raul owned a residence with his wife,Manuela,as joint tenants.The residence was purchased by Manuela ten years ago at a cost of $300,000 and has a fair market value of $1.4 million.Raul's estate will be allowed no marital deduction as to the property.

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

Brad holds a life estate in a trust created by his father,while Scott holds a life estate in a trust created by himself.Upon their deaths,Scott must include the trust in his gross estate,while Brad need not include his trust.Why?

Sam purchases a U.S.savings bond which he registers as follows: "Sam,payable to Don upon Sam's death." A gift occurs when Sam purchases the bond.

An Introduction to Taxation and Understanding the Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, cost Recovery, amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxabl

Property Transactions: Capital Gains and Losses, section 1231 and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Income Taxation of Trusts and Estates

Filters

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -Under her father's will,Faith is to receive 10,000 shares of GE common stock.Eight months after her father's death,Faith disclaims the 10,000 shares.