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. B

Question 2

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. D

Question 3

Identify which of the following statements is false.

Accepted Answer

A) The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date. 
B) If the alternate valuation date is elected,changes in value that occur solely because of a "mere lapse of time" usually are to be ignored. 
C) The alternate valuation date can be elected for estate tax purposes only if the election decreases the value of the gross estate and estate tax liability (after reduction for credits). 
D) If property is sold within 6 months of the date of death,the alternative valuation date is the date of sale. 
A) The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date. 
B) If the alternate valuation date is elected,changes in value that occur solely because of a "mere lapse of time" usually are to be ignored. 
C) The alternate valuation date can be elected for estate tax purposes only if the election decreases the value of the gross estate and estate tax liability (after reduction for credits). 
D) If property is sold within 6 months of the date of death,the alternative valuation date is the date of sale. A

Question 4

The payment date for estate taxes may be extended by the IRS for all of the following reasons except

Accepted Answer

A) the estate includes a 40% interest in a closely held business. 
B) the estate includes a relatively large remainder or reversionary interest. 
C) the executor of the estate shows reasonable cause. 
D) All are valid reasons. 
A) the estate includes a 40% interest in a closely held business. 
B) the estate includes a relatively large remainder or reversionary interest. 
C) the executor of the estate shows reasonable cause. 
D) All are valid reasons.

Question 5

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 6

Which of the following credits is available for estate tax purposes?

Accepted Answer

A) investment tax credit 
B) credit for income taxes paid on decedent's final return 
C) credit for estate taxes paid on certain prior transfers 
D) All of the above are available. 
A) investment tax credit 
B) credit for income taxes paid on decedent's final return 
C) credit for estate taxes paid on certain prior transfers 
D) All of the above are available.

Question 7

The estate tax return is due,ignoring extensions,3-1/2 months after the decedent's date of death.

Accepted Answer

A) True 
 B)False

Question 8

Five years ago,George and Jerry (his brother)provide $40,000 and $60,000,respectively,to purchase realty titled in the names of George and Jerry as joint tenants with right of survivorship.George dies in the current year and is survived by Jerry.At the time of George's death,the realty is valued at $300,000.What is the value of the realty in George's gross estate?

Accepted Answer

$300,000 × ($40,000

Question 9

Mary Johnson dies early in the current year.All her property passes subject to her will,which states that all of her property is to go to a QTIP trust for Dan for life with the remainder to their children.Mary's gross estate is about $5 million,and her Sec.2053 deductions are very small.Dan,who is in poor health,already owns about $3 million of property.What tax issues should Dan Johnson and the estate's executor consider with respect to the property that passes to the QTIP trust?

Accepted Answer

•The issue is what marital deduction (if

Question 10

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 11

Discuss the transferor provisions relating to the estate tax,and provide three examples of transactions governed by the transferor provisions.

Accepted Answer

They apply if the decedent earlier made

Question 12

On March 1,Bart transfers ownership of a $700,000 life insurance policy on his life that he purchased in 2011.How long must Bart live to avoid inclusion of the $700,000 death benefit in his estate?

Accepted Answer

A) six months 
B) one year 
C) three years 
D) No minimum time period exists. 
A) six months 
B) one year 
C) three years 
D) No minimum time period exists.

Question 13

Reversionary interests in publicly traded stocks included in a gross estate must be valued

Accepted Answer

A) by an independent actuary. 
B) by an appraiser. 
C) by considering the fact that the transferor has died. 
D) using actuarial tables. 
A) by an independent actuary. 
B) by an appraiser. 
C) by considering the fact that the transferor has died. 
D) using actuarial tables.

Question 14

Identify which of the following statements is true.

Accepted Answer

A) Regardless of how large the gross estate is,the estate tax liability can be completely eliminated if the estate is willed to a charitable organization. 
B) There is a ceiling on the marital deduction. 
C) All transfers to the surviving spouse are eligible for the marital deduction. 
D) All of the above are false. 
A) Regardless of how large the gross estate is,the estate tax liability can be completely eliminated if the estate is willed to a charitable organization. 
B) There is a ceiling on the marital deduction. 
C) All transfers to the surviving spouse are eligible for the marital deduction. 
D) All of the above are false.

Question 15

Identify which of the following statements is true.

Accepted Answer

A) In general,an estate tax return is not required to be filed unless the value of the gross estate and adjusted taxable gifts exceeds the exemption equivalent. 
B) Estate taxes must be paid when the return is filed,including any extensions. 
C) The estate tax return is due,ignoring extensions,12 months after the decedent's date of death. 
D) All of the above are false. 
A) In general,an estate tax return is not required to be filed unless the value of the gross estate and adjusted taxable gifts exceeds the exemption equivalent. 
B) Estate taxes must be paid when the return is filed,including any extensions. 
C) The estate tax return is due,ignoring extensions,12 months after the decedent's date of death. 
D) All of the above are false.

Question 16

Yoyo Corporation maintains a retirement plan for its employees to which it makes 70% of the contributions and the employees make 30%.Gary dies this year and is employed at the time of his death.Gary's spouse will receive an annuity valued at $600,000 from the retirement plan.How much of the annuity will be included in Gary's gross estate?

Accepted Answer

A) $600,000 
B) $420,000 
C) $180,000 
D) $0 
A) $600,000 
B) $420,000 
C) $180,000 
D) $0

Question 17

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 18

When computing the federal estate tax liability in 2014,the maximum amount for a taxable estate (not tentative tax)that the unified credit for the current year will eliminate all of the tax is

Accepted Answer

A) $555,800. 
B) $780,800. 
C) $5,340,000. 
D) $2,000,000. 
A) $555,800. 
B) $780,800. 
C) $5,340,000. 
D) $2,000,000.

Question 19

Lou dies on April 12,2011.All of Lou's property passed to Paula,his daughter.Paula dies on January 15,2013.Both Lou's and Paula's estates pay federal estate taxes.Lou's estate tax was $350,000.How much can Paula's estate claim for a credit for tax on prior transfers?

Accepted Answer

A) $350,000 
B) $280,000 
C) $210,000 
D) $140,000 
A) $350,000 
B) $280,000 
C) $210,000 
D) $140,000

Question 20

Identify which of the following statements is true.

Accepted Answer

A) Reversionary interests of less than 5% are includible in the gross estate. 
B) A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer. 
C) If a reversionary interest exceeds 3% of the property's value,the amount that is included in the estate is not the value of the reversionary interest,but rather the date-of-death value of the gifted property less the value of intervening life estates. 
D) All of the above are false. 
A) Reversionary interests of less than 5% are includible in the gross estate. 
B) A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer. 
C) If a reversionary interest exceeds 3% of the property's value,the amount that is included in the estate is not the value of the reversionary interest,but rather the date-of-death value of the gifted property less the value of intervening life estates. 
D) All of the above are false.

Identify which of the following statements is true.

Identify which of the following statements is true.

Identify which of the following statements is false.

The payment date for estate taxes may be extended by the IRS for all of the following reasons except

Identify which of the following statements is true.

Which of the following credits is available for estate tax purposes?

The estate tax return is due,ignoring extensions,3-1/2 months after the decedent's date of death.

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

Discuss the transferor provisions relating to the estate tax,and provide three examples of transactions governed by the transferor provisions.

On March 1,Bart transfers ownership of a $700,000 life insurance policy on his life that he purchased in 2011.How long must Bart live to avoid inclusion of the $700,000 death benefit in his estate?

Reversionary interests in publicly traded stocks included in a gross estate must be valued

Identify which of the following statements is true.

Identify which of the following statements is true.

When computing the federal estate tax liability in 2014,the maximum amount for a taxable estate (not tentative tax)that the unified credit for the current year will eliminate all of the tax is

Lou dies on April 12,2011.All of Lou's property passed to Paula,his daughter.Paula dies on January 15,2013.Both Lou's and Paula's estates pay federal estate taxes.Lou's estate tax was $350,000.How much can Paula's estate claim for a credit for tax on prior transfers?

Identify which of the following statements is true.

Tax Research

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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

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Exam 13: The Estate Tax

Identify which of the following statements is true.

Identify which of the following statements is true.

Identify which of the following statements is false.

The payment date for estate taxes may be extended by the IRS for all of the following reasons except

Identify which of the following statements is true.

Which of the following credits is available for estate tax purposes?

The estate tax return is due,ignoring extensions,3-1/2 months after the decedent's date of death.

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

Discuss the transferor provisions relating to the estate tax,and provide three examples of transactions governed by the transferor provisions.

On March 1,Bart transfers ownership of a $700,000 life insurance policy on his life that he purchased in 2011.How long must Bart live to avoid inclusion of the $700,000 death benefit in his estate?

Reversionary interests in publicly traded stocks included in a gross estate must be valued

Identify which of the following statements is true.

Identify which of the following statements is true.

When computing the federal estate tax liability in 2014,the maximum amount for a taxable estate (not tentative tax)that the unified credit for the current year will eliminate all of the tax is

Lou dies on April 12,2011.All of Lou's property passed to Paula,his daughter.Paula dies on January 15,2013.Both Lou's and Paula's estates pay federal estate taxes.Lou's estate tax was $350,000.How much can Paula's estate claim for a credit for tax on prior transfers?

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