Question 1

Concerning the election to split gifts under § 2513,which of the following statements is incorrect?

Accepted Answer

A) The election can be made even if the parties are not married for the entire year of the gift. 
B) The election does take into account any prior taxable gifts made by either spouses. 
C) The election doubles the number of annual exclusions available. 
D) The election has no utility in a community property jurisdiction. 
E) The election can be made even if the parties are divorced as long as neither spouse has remarried by the end of the year. 
A) The election can be made even if the parties are not married for the entire year of the gift. 
B) The election does take into account any prior taxable gifts made by either spouses. 
C) The election doubles the number of annual exclusions available. 
D) The election has no utility in a community property jurisdiction. 
E) The election can be made even if the parties are divorced as long as neither spouse has remarried by the end of the year.

Question 2

As a result of an auto accident from which she later died,Irene totaled a Bentley worth $95,000.If the insurance company covers $60,000 of the loss,Irene's estate can claim a casualty loss of $35,000 in arriving at the taxable estate.

Accepted Answer

A) True 
 B)False

Question 3

In some cases,the Federal gift tax can be imposed on someone other than the donor.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Classify each of the independent statements appearing below.
a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate.
-Surviving spouse's share of the community property.

Accepted Answer

The answer of Classify each of the independent statements appearing...

Question 6

Mark dies on March 6,2015.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 3,2015,and record date was March 5,2015. 
C) Federal income tax refund for 2014-received on March 5,2015. 
D) Insurance recovery on auto accident that occurred on February 25,2015. 
E) Insurance recovery from theft of sailboat on March 7,2015. 
A) Interest earned (before death) on City of Cleveland bonds. 
B) Cash dividend on stock owned by Mark-declaration date was February 3,2015,and record date was March 5,2015. 
C) Federal income tax refund for 2014-received on March 5,2015. 
D) Insurance recovery on auto accident that occurred on February 25,2015. 
E) Insurance recovery from theft of sailboat on March 7,2015.

Question 7

Classify each of the independent statements appearing below.
a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate.
-Interest on municipal bonds accrued after death.

Accepted Answer

The answer of Classify each of the independent statements appearing...

Question 8

Classify each statement appearing below.
a.No taxable transfer occurs
b.Gift tax applies
c.Estate tax applies
-Meg gives her 18-year-old son money for his college tuition and living expenses (e.g. ,room and board).

Accepted Answer

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

Question 9

Harry and Brenda are husband and wife.Using his funds,Harry purchases real estate which he lists as: "Harry and Brenda,tenants by the entirety with right of survivorship." If Brenda dies first,none of the real estate will be included in her gross estate.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

In determining the gift tax ba

Question 11

A father wants to give a parcel of land to his two children.If he wants the survivor to have sole ownership,he should list ownership of the property as joint tenants.

Accepted Answer

A) True 
 B)False

Question 12

At the time of her death on June 6,Mary owned the following assets. ∙ Taupe Corporation stock (cost $400,000,FMV $800,000).On May 4,Taupe declared a cash dividend,payable on June 15,to shareholders as of the record date of June 4.Mary's executor received the $40,000 dividend on the scheduled payment date. ∙ City of Boise bonds (cost $800,000,FMV $780,000).Interest accrued to June 6 was $42,000.The executor eventually collected $50,000 (included post-death accrual of $8,000) on July 20. As to these transactions,how much is included in Mary's gross estate?

Accepted Answer

$1,662,000.$800,000 (FMV of Ta

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

Becky made taxable gifts in 2013,2014,and 2015.In computing the gift tax on the 2015 gift,she must consider all of the prior taxable gifts.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) Trent established an irrevocable trust,income payable to himself for life and,upon his death,remainder to his children. 
B) Trent dies owning a U.S.savings bond with ownership listed as: "Trent,payable to Sue on Trent's death." Sue redeems the bond. 
C) Trent sends $25,000 to Alice's oral surgeon in payment of her dental implants.Alice is Trent's sister and does not qualify as his dependent. 
D) Trent pays Eva $800,000 in a property settlement of her marital rights.One month later Trent and Eva are divorced. 
E) None of the above. 
A) Trent established an irrevocable trust,income payable to himself for life and,upon his death,remainder to his children. 
B) Trent dies owning a U.S.savings bond with ownership listed as: "Trent,payable to Sue on Trent's death." Sue redeems the bond. 
C) Trent sends $25,000 to Alice's oral surgeon in payment of her dental implants.Alice is Trent's sister and does not qualify as his dependent. 
D) Trent pays Eva $800,000 in a property settlement of her marital rights.One month later Trent and Eva are divorced. 
E) None of the above.

Question 16

Classify each of the independent statements appearing below.
a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate.
-Note receivable issued by a grandson and forgiven by the decedent in her will.

Accepted Answer

The answer of Classify each of the independent statements appearing...

Question 17

Waldo is his mother's sole heir and is the designated executor of her estate.Although the alternate valuation date would yield a smaller gross estate and less estate tax liability,the § 2032 election is not made.Instead,Waldo files a Form 706 for his mother's estate using higher date of death values.Why?

Accepted Answer

Presuming Waldo is acting intelligently,

Question 18

Classify each statement appearing below.
a.No taxable transfer occurs
b.Gift tax applies
c.Estate tax applies
-Maggie purchased an insurance policy on Jim's life and designated Susan as the beneficiary.

Accepted Answer

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

Question 19

Ben and Lynn are married and have four pre-teen grandchildren.They want to contribute to a § 529 plan on behalf of their education.For 2015,what is the maximum amount they can transfer to the plan without making a taxable gift?

Accepted Answer

$560,000.2 (number of donors)

Question 20

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.Ten months after her father's death,Faith disclaims 10,000 shares.

Accepted Answer

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

Exam 27: Family Tax Planning

Concerning the election to split gifts under § 2513,which of the following statements is incorrect?

As a result of an auto accident from which she later died,Irene totaled a Bentley worth $95,000.If the insurance company covers $60,000 of the loss,Irene's estate can claim a casualty loss of $35,000 in arriving at the taxable estate.

In some cases,the Federal gift tax can be imposed on someone other than the donor.

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

Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Surviving spouse's share of the community property.

Mark dies on March 6,2015.Which,if any,of the following items is not included in his gross estate?

Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Interest on municipal bonds accrued after death.

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -Meg gives her 18-year-old son money for his college tuition and living expenses (e.g. ,room and board).

Harry and Brenda are husband and wife.Using his funds,Harry purchases real estate which he lists as: "Harry and Brenda,tenants by the entirety with right of survivorship." If Brenda dies first,none of the real estate will be included in her gross estate.

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

A father wants to give a parcel of land to his two children.If he wants the survivor to have sole ownership,he should list ownership of the property as joint tenants.

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.

Becky made taxable gifts in 2013,2014,and 2015.In computing the gift tax on the 2015 gift,she must consider all of the prior taxable gifts.

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

Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Note receivable issued by a grandson and forgiven by the decedent in her will.

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -Maggie purchased an insurance policy on Jim's life and designated Susan as the beneficiary.

Ben and Lynn are married and have four pre-teen grandchildren.They want to contribute to a § 529 plan on behalf of their education.For 2015,what is the maximum amount they can transfer to the plan without making a taxable gift?

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.Ten months after her father's death,Faith disclaims 10,000 shares.

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.Ten months after her father's death,Faith disclaims 10,000 shares.