Question 1

Discuss the ways in which the estate and gift tax system is a unified system.

Accepted Answer

The same tax rates apply for both gift a

Question 2

Identify which of the following statements is true.

Accepted Answer

A)  An individual making a qualified disclaimer can determine to whom the disclaimed property will pass. 
B)  A qualified disclaimer must be made within six months after (a) the day the property is transferred, or (b) the day the person receiving the property becomes age 21, whichever is later. 
C)  One of the tests that a qualified disclaimer must meet is that it must be an irrevocable, unqualified, written refusal to accept property. 
D)  All of the above are false. 
A)  An individual making a qualified disclaimer can determine to whom the disclaimed property will pass. 
B)  A qualified disclaimer must be made within six months after (a) the day the property is transferred, or (b) the day the person receiving the property becomes age 21, whichever is later. 
C)  One of the tests that a qualified disclaimer must meet is that it must be an irrevocable, unqualified, written refusal to accept property. 
D)  All of the above are false.

Question 3

On March 1,Bruce transfers $300,000 to a revocable trust with Sprint Bank as trustee.The trustee must pay out all the income to Sam during Sam's lifetime.At Sam's death,the property is to be paid to Sam Jr.On December 31,the trustee distributes $40,000 of income to Sam.What date did a gift occur? What was the amount of the gift?

Accepted Answer

A $40,000 gift occurred on Dec

Question 4

A Crummey trust

Accepted Answer

A)  provides the donor with the ability to retrieve the property. 
B)  prohibits the beneficiary from withdrawing assets. 
C)  allows the donor an annual exclusion for transfers. 
D)  receives property that is not eligible for the annual exclusion. 
A)  provides the donor with the ability to retrieve the property. 
B)  prohibits the beneficiary from withdrawing assets. 
C)  allows the donor an annual exclusion for transfers. 
D)  receives property that is not eligible for the annual exclusion.

Question 5

A qualified disclaimer must be made within nine months after (a)the day the property is transferred,or (b)the day the person receiving the property becomes age 21,whichever is later.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following situations requires that a gift tax return be filed?

Accepted Answer

A)  George gives wife, Laura, a new car for her birthday. 
B)  Yanisha makes gifts of $3,000 of present interest property to each of her nieces and nephews. 
C)  Archie pays the hospital medical bills for his friend Paige. 
D)  Ida purchases a beach home, listing Mark as a joint tenant. Mark provides no consideration for the home. 
A)  George gives wife, Laura, a new car for her birthday. 
B)  Yanisha makes gifts of $3,000 of present interest property to each of her nieces and nephews. 
C)  Archie pays the hospital medical bills for his friend Paige. 
D)  Ida purchases a beach home, listing Mark as a joint tenant. Mark provides no consideration for the home.

Question 7

Identify which of the following statements is false.

Accepted Answer

A)  The interpolated terminal reserve is similar to a life insurance policy's cash surrender value. 
B)  A gift occurs when the owner of an insurance policy irrevocably assigns all ownership rights in the policy to another. 
C)  The payment of premiums on an insurance policy that is owned by another does not constitute a gift. 
D)  The value of the gift of a life insurance policy is the amount it would cost to purchase a comparable policy on the date of the gift. 
A)  The interpolated terminal reserve is similar to a life insurance policy's cash surrender value. 
B)  A gift occurs when the owner of an insurance policy irrevocably assigns all ownership rights in the policy to another. 
C)  The payment of premiums on an insurance policy that is owned by another does not constitute a gift. 
D)  The value of the gift of a life insurance policy is the amount it would cost to purchase a comparable policy on the date of the gift.

Question 8

Identify which of the following statements is false.

Accepted Answer

A)  The marital deduction for gift tax purposes is limited to one-half the value of the property transferred. 
B)  The marital deduction is generally allowed since the transfer remains within the economic (husband/wife) unit. 
C)  The marital deduction for gift tax purposes is limited to the amount of the includible gift (e.g., the amount of the gift that is in excess of the annual exclusion). 
D)  Transfers of community property are eligible for the marital exclusion. 
A)  The marital deduction for gift tax purposes is limited to one-half the value of the property transferred. 
B)  The marital deduction is generally allowed since the transfer remains within the economic (husband/wife) unit. 
C)  The marital deduction for gift tax purposes is limited to the amount of the includible gift (e.g., the amount of the gift that is in excess of the annual exclusion). 
D)  Transfers of community property are eligible for the marital exclusion.

Question 9

Abby transfers $10,000 to a political organization to promote her favorite candidate for president.Does Abby's transfer qualify as a gift?

Accepted Answer

No,political contrib

Question 10

Calvin transfers land to a trust.Calvin retains the right to the income from the land for the rest of his life.Upon his death,the land is to be transferred to his daughter,Melissa.Melissa's interest is

Accepted Answer

A)  a remainder interest. 
B)  a life estate. 
C)  a reversionary interest. 
D)  a term certain. 
A)  a remainder interest. 
B)  a life estate. 
C)  a reversionary interest. 
D)  a term certain.

Question 11

On April 1,Martha opens a joint bank account with Ned and deposits $1,000.Ned deposits $500 into the account on April 2.On May 2,Martha withdraws $750.Two days later,Ned withdraws $600.

Accepted Answer

A)  Martha has made a gift to Ned of $100. 
B)  Ned has made a gift to Martha of $500. 
C)  Martha has made a gift to Ned of $600. 
D)  Martha has made a gift to Ned of $1,000. 
A)  Martha has made a gift to Ned of $100. 
B)  Ned has made a gift to Martha of $500. 
C)  Martha has made a gift to Ned of $600. 
D)  Martha has made a gift to Ned of $1,000.

Question 12

Identify which of the following statements is false.

Accepted Answer

A)  Gift tax returns are due annually by April 15 following the year of the gift. No extensions are allowed. 
B)  The donor pays the gift tax generally. 
C)  Gift tax returns are filed on a calendar-year basis. 
D)  Receipt of an extension of time for filing a gift tax return does not extend the due date for payment of the gift tax. 
A)  Gift tax returns are due annually by April 15 following the year of the gift. No extensions are allowed. 
B)  The donor pays the gift tax generally. 
C)  Gift tax returns are filed on a calendar-year basis. 
D)  Receipt of an extension of time for filing a gift tax return does not extend the due date for payment of the gift tax.

Question 13

A split-interest gift transfer

Accepted Answer

A)  involves two public (charitable) organizations. 
B)  involves two present interests. 
C)  qualifies for a charitable contribution deduction if the recipient charity receives a guaranteed annuity, which is a present interest. 
D)  cannot qualify for a deduction if a future interest is given to a charitable organization. 
A)  involves two public (charitable) organizations. 
B)  involves two present interests. 
C)  qualifies for a charitable contribution deduction if the recipient charity receives a guaranteed annuity, which is a present interest. 
D)  cannot qualify for a deduction if a future interest is given to a charitable organization.

Question 14

Discuss the negative aspects of gifts.

Accepted Answer

The donor loses complete control of the

Question 15

What are the requirements for classifying a transaction as a transfer of a qualified terminable interest property (QTIP)?

Accepted Answer

The requirements for a qualified termina

Question 16

Identify which of the following statements is false.

Accepted Answer

A)  A power of appointment exists when a person transfers property and grants someone else the power to specify who eventually will receive the property. 
B)  A person possesses a general power of appointment if the person has the power to appoint property to himself, his creditors, his estate, or the creditors of his estate. 
C)  The donee's payment of the gift tax does not reduce the amount of the gift because it is treated as consideration paid to the donor. 
D)  The donor must recognize as a gain the excess of the gift tax payable over the adjusted basis of the property. 
A)  A power of appointment exists when a person transfers property and grants someone else the power to specify who eventually will receive the property. 
B)  A person possesses a general power of appointment if the person has the power to appoint property to himself, his creditors, his estate, or the creditors of his estate. 
C)  The donee's payment of the gift tax does not reduce the amount of the gift because it is treated as consideration paid to the donor. 
D)  The donor must recognize as a gain the excess of the gift tax payable over the adjusted basis of the property.

Question 17

Gordon died on January 1 and by his will left land with an adjusted basis of $60,000 and an FMV of $100,000 to Becky.Becky disclaims the property on December 31 of the year of death,when the land was still worth $100,000.Becky has made a gift (before the annual gift tax exclusion)of

Accepted Answer

A)  $100,000. 
B)  $60,000. 
C)  $50,000. 
D)  $0. 
A)  $100,000. 
B)  $60,000. 
C)  $50,000. 
D)  $0.

Question 18

On June 1,Sherri deposits $60,000 into a new joint bank account in the names of Sherri and John.Her friend John makes no deposits.On December 15th,John withdraws $25,000 from the joint account.What are the gift tax consequences,if any?

Accepted Answer

No gift arises upon the creation of the

Question 19

Roger makes a $1,000,000 cash gift on January 1 of the current year,and dies on February 1 of the current year.Roger's gift tax return is due

Accepted Answer

A)  April 15 of the current year. 
B)  December 31 of the current year. 
C)  April 15 of the next year. 
D)  nine months after his date of death. 
A)  April 15 of the current year. 
B)  December 31 of the current year. 
C)  April 15 of the next year. 
D)  nine months after his date of death.

Question 20

Damitria transfers her rights in a $100,000 insurance policy on June 1 to Tremayne.The policy has a cash value of $9,000 and an interpolated terminal reserve of $8,500.The annual policy premium of $12,000 had been paid on January 1.Damitria's gift (before the annual gift tax exclusion)to Tremayne is

Accepted Answer

A)  $8,500. 
B)  $9,000. 
C)  $15,500. 
D)  $20,500. 
A)  $8,500. 
B)  $9,000. 
C)  $15,500. 
D)  $20,500.

Discuss the ways in which the estate and gift tax system is a unified system.

Identify which of the following statements is true.

A Crummey trust

A qualified disclaimer must be made within nine months after (a)the day the property is transferred,or (b)the day the person receiving the property becomes age 21,whichever is later.

Which of the following situations requires that a gift tax return be filed?

Identify which of the following statements is false.

Identify which of the following statements is false.

Abby transfers $10,000 to a political organization to promote her favorite candidate for president.Does Abby's transfer qualify as a gift?

Calvin transfers land to a trust.Calvin retains the right to the income from the land for the rest of his life.Upon his death,the land is to be transferred to his daughter,Melissa.Melissa's interest is

On April 1,Martha opens a joint bank account with Ned and deposits $1,000.Ned deposits $500 into the account on April 2.On May 2,Martha withdraws $750.Two days later,Ned withdraws $600.

Identify which of the following statements is false.

A split-interest gift transfer

Discuss the negative aspects of gifts.

What are the requirements for classifying a transaction as a transfer of a qualified terminable interest property (QTIP)?

Identify which of the following statements is false.

Gordon died on January 1 and by his will left land with an adjusted basis of $60,000 and an FMV of $100,000 to Becky.Becky disclaims the property on December 31 of the year of death,when the land was still worth $100,000.Becky has made a gift (before the annual gift tax exclusion)of

On June 1,Sherri deposits $60,000 into a new joint bank account in the names of Sherri and John.Her friend John makes no deposits.On December 15th,John withdraws $25,000 from the joint account.What are the gift tax consequences,if any?

Roger makes a $1,000,000 cash gift on January 1 of the current year,and dies on February 1 of the current year.Roger's gift tax return is due

Damitria transfers her rights in a $100,000 insurance policy on June 1 to Tremayne.The policy has a cash value of $9,000 and an interpolated terminal reserve of $8,500.The annual policy premium of $12,000 had been paid on January 1.Damitria's gift (before the annual gift tax exclusion)to Tremayne is

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 Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

US Taxation of Foreign-Related Transactions

Filters

Exam 12: The Gift Tax

Discuss the ways in which the estate and gift tax system is a unified system.

Identify which of the following statements is true.

A Crummey trust

A qualified disclaimer must be made within nine months after (a)the day the property is transferred,or (b)the day the person receiving the property becomes age 21,whichever is later.

Which of the following situations requires that a gift tax return be filed?

Identify which of the following statements is false.

Identify which of the following statements is false.

Abby transfers $10,000 to a political organization to promote her favorite candidate for president.Does Abby's transfer qualify as a gift?

Calvin transfers land to a trust.Calvin retains the right to the income from the land for the rest of his life.Upon his death,the land is to be transferred to his daughter,Melissa.Melissa's interest is

On April 1,Martha opens a joint bank account with Ned and deposits $1,000.Ned deposits $500 into the account on April 2.On May 2,Martha withdraws $750.Two days later,Ned withdraws $600.

Identify which of the following statements is false.

A split-interest gift transfer

Discuss the negative aspects of gifts.

What are the requirements for classifying a transaction as a transfer of a qualified terminable interest property (QTIP)?

Identify which of the following statements is false.

Gordon died on January 1 and by his will left land with an adjusted basis of $60,000 and an FMV of $100,000 to Becky.Becky disclaims the property on December 31 of the year of death,when the land was still worth $100,000.Becky has made a gift (before the annual gift tax exclusion)of

On June 1,Sherri deposits $60,000 into a new joint bank account in the names of Sherri and John.Her friend John makes no deposits.On December 15th,John withdraws $25,000 from the joint account.What are the gift tax consequences,if any?

Roger makes a $1,000,000 cash gift on January 1 of the current year,and dies on February 1 of the current year.Roger's gift tax return is due

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 Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

US Taxation of Foreign-Related Transactions

Filters