Question 1

Identify which of the following statements is true.

Accepted Answer

A)  The alternate valuation date can be used for estate tax purposes only if the election increases the value of the gross estate. 
B)  If the alternative valuation date is elected, changes in value that occur solely because of "mere lapse of time" usually are to be ignored. 
C)  The gross estate, a federal law concept, is generally smaller than the probate estate, a state law concept. 
D)  All of the above are false. 
A)  The alternate valuation date can be used for estate tax purposes only if the election increases the value of the gross estate. 
B)  If the alternative valuation date is elected, changes in value that occur solely because of "mere lapse of time" usually are to be ignored. 
C)  The gross estate, a federal law concept, is generally smaller than the probate estate, a state law concept. 
D)  All of the above are false.

Question 2

Identify which of the following statements is true.

Accepted Answer

A)  The unified credit is the only credit common to both the gift and estate tax computation. 
B)  For estate tax purposes, publicly traded stocks are valued at their closing price on the date of death. 
C)  Stocks traded on a stock exchange are valued at the closing price for the date of death unless the alternate valuation date is elected. 
D)  All of the above are false. 
A)  The unified credit is the only credit common to both the gift and estate tax computation. 
B)  For estate tax purposes, publicly traded stocks are valued at their closing price on the date of death. 
C)  Stocks traded on a stock exchange are valued at the closing price for the date of death unless the alternate valuation date is elected. 
D)  All of the above are false.

Question 3

Ernie died this year.His will creates a $2,000,000 QTIP trust for his widow.Ernie's executor elects to claim the marital deduction for the QTIP transfer.At the time of the surviving spouse's death,the value of the QTIP trust is $3.6 million.The amount of the QTIP trust included in the surviving spouse's gross estate is

Accepted Answer

A)  $3,600,000. 
B)  $2,000,000. 
C)  $1,800,000. 
D)  $0. 
A)  $3,600,000. 
B)  $2,000,000. 
C)  $1,800,000. 
D)  $0.

Question 4

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 on

Question 5

The value of stock that is not publicly traded may be determined by considering

Accepted Answer

A)  the nature and history of the business. 
B)  earning capacity. 
C)  dividend-paying capacity. 
D)  all of the above 
A)  the nature and history of the business. 
B)  earning capacity. 
C)  dividend-paying capacity. 
D)  all of the above

Question 6

Identify which of the following statements is true.

Accepted Answer

A)  The gross-up rule applies to the gift tax triggered by a gift during a three-year look-forward period. 
B)  All gift taxes paid by the decedent on gifts made within five years of the date of death must be included in the gross estate. 
C)  If a transferor retains voting rights in stock of a controlled corporation for the transferor's lifetime, the stock is included in the transferor's gross estate. 
D)  All of the above are false. 
A)  The gross-up rule applies to the gift tax triggered by a gift during a three-year look-forward period. 
B)  All gift taxes paid by the decedent on gifts made within five years of the date of death must be included in the gross estate. 
C)  If a transferor retains voting rights in stock of a controlled corporation for the transferor's lifetime, the stock is included in the transferor's gross estate. 
D)  All of the above are false.

Question 7

On December 1,1976,Bart made a gift and claimed a $30,000 specific exemption.When Bart died in 2008,his tax base was $2,000,000.Assuming the maximum unified credit is $780,800,what is the credit available when computing Bart's estate tax is what?

Accepted Answer

$780,800 - ($30,000 × 0.20)= $

Question 8

Yee made $3 million of taxable gifts in 1993 and paid gift taxes (less the unified credit)of $1,098,000.Yee died in 2013 with a taxable estate of $10,000,000.At current rates,the gift taxes payable on $3 million would be $1,145,800.Yee died in a year when the unified credit was $2,045,800.Determine her estate tax liability.

Accepted Answer

The answer of Yee made $3 million of taxable gifts...

Question 9

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 10

Sasha gives $1,000,000 to her granddaughter.Sasha has used all of her unified credit and is in the 40% marginal gift tax bracket; ignore the annual exclusion and exemption.What is the amount of her tax on this transfer?

Accepted Answer

A)  $450,000 
B)  $400,000 
C)  $1,450,000 
D)  $652,500 
A)  $450,000 
B)  $400,000 
C)  $1,450,000 
D)  $652,500

Question 11

Martin transfers stock to an irrevocable trust and names himself to receive the trust income for life with the remainder interest gifted to his son.When Martin dies,

Accepted Answer

A)  none of the stock will be included in Martin's estate. 
B)  the stock's value at the time of transfer to the trust will be included in Martin's estate. 
C)  the value of the stock less the present value of the income receivable by Martin will be included in Martin's estate. 
D)  the value of the stock at death will be included in Martin's estate. 
A)  none of the stock will be included in Martin's estate. 
B)  the stock's value at the time of transfer to the trust will be included in Martin's estate. 
C)  the value of the stock less the present value of the income receivable by Martin will be included in Martin's estate. 
D)  the value of the stock at death will be included in Martin's estate.

Question 12

Julian died on November 1 and owned 100 shares of a New York Stock Exchange stock.The stock traded at a high of 100 and a low of 98 on November 1.It opened at 98 and closed at 100.On Julian's estate tax return,what will the per-share and total value of the stock be?

Accepted Answer

($100 + 98)/2 = $99

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

In 2000,Mike transfers $100,000 of leased land to a trust.The trust income is payable to Mike's son for 13 years,after which time the land is to revert to Mike.This year,Mike dies when the land is valued at $210,000.The applicable federal rate is 10%,and the reversionary actuarial factor is 0.30.How much of the trust value must be included in Mike's estate?

Accepted Answer

0.30 × $21

Question 15

Wally died on November 15.His gross estate includes 100 shares of ABC Corporation stock.On November 15,ABC's stock trades were at a high of $100,a low of $92,and a close of $94.What is the per-share value of the stock in Wally's estate?

Accepted Answer

($100 + $9

Question 16

Explain why living trusts are popular tax-planning vehicles.

Accepted Answer

Revocable trusts,sometimes called living

Question 17

Which of the following is not a test for an interest to qualify for the marital deduction?

Accepted Answer

A)  The property must be included in the decedent's gross estate. 
B)  If a QTIP transfer is made, the spouse must be entitled to all of the income at least annually for life. 
C)  The interest conveyed must not be a nondeductible terminable interest. 
D)  All of the above are required. 
A)  The property must be included in the decedent's gross estate. 
B)  If a QTIP transfer is made, the spouse must be entitled to all of the income at least annually for life. 
C)  The interest conveyed must not be a nondeductible terminable interest. 
D)  All of the above are required.

Question 18

Michael Moriarty,a widower,is quite elderly and is beginning to do some estate planning.His goal is to reduce his transfer taxes.He is considering purchasing land with a high potential for appreciation and owning it with his grandson as joint tenants with rights of survivorship.Michael would provide all of the consideration,estimated to be about 11.5 million.What tax issues should Michael Moriarty consider with respect to the purchase of the land?

Accepted Answer

• Does Michael make a gift when he purch

Question 19

Following are the fair market values of Wilma's assets at her date of death:   The executor of Wilma's estate did not elect the alternate valuation date.The amount includible in Wilma's gross estate is

Accepted Answer

A)  $150,000. 
B)  $550,000. 
C)  $800,000. 
D)  $950,000. 
A)  $150,000. 
B)  $550,000. 
C)  $800,000. 
D)  $950,000.

Question 20

Identify which of the following statements is true.

Accepted Answer

A)  Administrative expenses are not deductible on the estate's income tax return. 
B)  Casualty or theft losses incurred during the administration of the estate are not deductible on the estate tax return. 
C)  There is a limitation of $100,000 on the charitable contribution deduction for estate tax purposes. 
D)  All of the above are false. 
A)  Administrative expenses are not deductible on the estate's income tax return. 
B)  Casualty or theft losses incurred during the administration of the estate are not deductible on the estate tax return. 
C)  There is a limitation of $100,000 on the charitable contribution deduction for estate tax purposes. 
D)  All of the above are false.

Identify which of the following statements is true.

Identify which of the following statements is true.

The value of stock that is not publicly traded may be determined by considering

Identify which of the following statements is true.

On December 1,1976,Bart made a gift and claimed a $30,000 specific exemption.When Bart died in 2008,his tax base was $2,000,000.Assuming the maximum unified credit is $780,800,what is the credit available when computing Bart's estate tax is what?

Identify which of the following statements is false.

Sasha gives $1,000,000 to her granddaughter.Sasha has used all of her unified credit and is in the 40% marginal gift tax bracket; ignore the annual exclusion and exemption.What is the amount of her tax on this transfer?

Martin transfers stock to an irrevocable trust and names himself to receive the trust income for life with the remainder interest gifted to his son.When Martin dies,

Julian died on November 1 and owned 100 shares of a New York Stock Exchange stock.The stock traded at a high of 100 and a low of 98 on November 1.It opened at 98 and closed at 100.On Julian's estate tax return,what will the per-share and total value of the stock be?

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

Wally died on November 15.His gross estate includes 100 shares of ABC Corporation stock.On November 15,ABC's stock trades were at a high of $100,a low of $92,and a close of $94.What is the per-share value of the stock in Wally's estate?

Explain why living trusts are popular tax-planning vehicles.

Which of the following is not a test for an interest to qualify for the marital deduction?

Following are the fair market values of Wilma's assets at her date of death: The executor of Wilma's estate did not elect the alternate valuation date.The amount includible in Wilma's gross estate is

Identify which of the following statements is true.

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

US Corporations

The Gift Tax

Income Taxation of Trusts and Estates

Administrative Procedures

US Taxation of Foreign-Related Transactions

Filters

Exam 13: The Estate Tax

Identify which of the following statements is true.

Identify which of the following statements is true.

The value of stock that is not publicly traded may be determined by considering

Identify which of the following statements is true.

On December 1,1976,Bart made a gift and claimed a $30,000 specific exemption.When Bart died in 2008,his tax base was $2,000,000.Assuming the maximum unified credit is $780,800,what is the credit available when computing Bart's estate tax is what?

Identify which of the following statements is false.

Sasha gives $1,000,000 to her granddaughter.Sasha has used all of her unified credit and is in the 40% marginal gift tax bracket; ignore the annual exclusion and exemption.What is the amount of her tax on this transfer?

Martin transfers stock to an irrevocable trust and names himself to receive the trust income for life with the remainder interest gifted to his son.When Martin dies,

Julian died on November 1 and owned 100 shares of a New York Stock Exchange stock.The stock traded at a high of 100 and a low of 98 on November 1.It opened at 98 and closed at 100.On Julian's estate tax return,what will the per-share and total value of the stock be?

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

Wally died on November 15.His gross estate includes 100 shares of ABC Corporation stock.On November 15,ABC's stock trades were at a high of $100,a low of $92,and a close of $94.What is the per-share value of the stock in Wally's estate?

Explain why living trusts are popular tax-planning vehicles.

Which of the following is not a test for an interest to qualify for the marital deduction?

Following are the fair market values of Wilma's assets at her date of death: The executor of Wilma's estate did not elect the alternate valuation date.The amount includible in Wilma's gross estate is

Identify which of the following statements is true.

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

US Corporations

The Gift Tax

Income Taxation of Trusts and Estates

Administrative Procedures

US Taxation of Foreign-Related Transactions

Filters