Question 1

The election of the alternate valuation date does not include any income earned by the property after the date the deceased owner died.

Accepted Answer

A) True 
 B)False

Question 2

In 2010 and with $100,000, Ronald establishes a joint savings account with his cousin, Allison. In 2011, Allison withdraws the $100,000 and disappears. Ronald made a gift to Allison in 2011.

Accepted Answer

A) True 
 B)False

Question 3

Among the assets included in Taylor's gross estate are the following.

Accepted Answer

The answer of Among the assets included in Taylor's gross...

Question 4

When Travis learns he is seriously ill, he transfers an insurance policy on his life (maturity value of $2,000,000) to his wife Alexis. The couple's adult children are the designated beneficiaries of the policy. Has Travis acted wisely?

Accepted Answer

Even if Travis lives for three years and

Question 5

At the time of his death, Hal owned 10 cemetery lots worth $40,000 ($4,000 each) for use by himself and his family. These lots are included in Hal's gross estate and a deduction of $4,000 is allowed the estate.

Accepted Answer

A) True 
 B)False

Question 6

If the value of the gross estate is lower on the alternate valuation date than on the date of death, then the alternate valuation must be used.

Accepted Answer

A) True 
 B)False

Question 7

Frank owns an insurance policy on the life of Cynthia, with Leon as the designated beneficiary. Upon Cynthia's prior death, Frank is treated as making a gift of the insurance proceeds to Leon.

Accepted Answer

A) True 
 B)False

Question 8

Mitch pays the surgeon and the hospital for his aunt's gall bladder operation. The transfer is not subject to the gift tax.

Accepted Answer

A) True 
 B)False

Question 9

Which, if any, of the following is a correct statement regarding the filing of a gift tax return (Form 709)?

Accepted Answer

A)  A donor must file a Form 709 in the same year in which the gift was made. 
B)  The due date of a Form 709 is the same as the due date of the donor's Form 1040. 
C)  A Form 709 may have to be filed even though the value of the gift was less than the amount of the annual exclusion. 
D)  Melody gives her husband a new Mercedes convertible for his birthday. Melody must file a Form 709 to report the gift even though no gift tax results. 
E)  None of the above. 
A)  A donor must file a Form 709 in the same year in which the gift was made. 
B)  The due date of a Form 709 is the same as the due date of the donor's Form 1040. 
C)  A Form 709 may have to be filed even though the value of the gift was less than the amount of the annual exclusion. 
D)  Melody gives her husband a new Mercedes convertible for his birthday. Melody must file a Form 709 to report the gift even though no gift tax results. 
E)  None of the above.

Question 10

Concerning the formula for the Federal estate tax:

Accepted Answer

A)  The tax base results after any post-1976 taxable gifts are subtracted from the taxable estate. 
B)  The taxable estate is determined without reduction for any state death taxes paid. 
C)  Income tax owed by the decedent at the date of death is deducted in arriving at the taxable estate. 
D)  A separate $5 million exclusion amount is available for each of the Federal gift tax, estate tax, and generation-skipping tax. 
E)  None of the above statements is true. 
A)  The tax base results after any post-1976 taxable gifts are subtracted from the taxable estate. 
B)  The taxable estate is determined without reduction for any state death taxes paid. 
C)  Income tax owed by the decedent at the date of death is deducted in arriving at the taxable estate. 
D)  A separate $5 million exclusion amount is available for each of the Federal gift tax, estate tax, and generation-skipping tax. 
E)  None of the above statements is true.

Question 11

The election of the alternate valuation date cannot affect the amount of a charitable deduction allowed to an estate for a bequest to a qualified charity.

Accepted Answer

A) True 
 B)False

Question 12

Byron and Amanda are heirs of the Nelson estate. Although each receives a $20,000 bequest, they pay different amounts of inheritance tax. Explain the possible reason for the discrepancy.

Accepted Answer

The applicable exemptions and rates of t

Question 13

The current $5 million exemption equivalent applies to both the Federal estate and gift taxes.

Accepted Answer

A) True 
 B)False

The election of the alternate valuation date does not include any income earned by the property after the date the deceased owner died.

In 2010 and with $100,000, Ronald establishes a joint savings account with his cousin, Allison. In 2011, Allison withdraws the $100,000 and disappears. Ronald made a gift to Allison in 2011.

Among the assets included in Taylor's gross estate are the following.

When Travis learns he is seriously ill, he transfers an insurance policy on his life (maturity value of $2,000,000) to his wife Alexis. The couple's adult children are the designated beneficiaries of the policy. Has Travis acted wisely?

At the time of his death, Hal owned 10 cemetery lots worth $40,000 ($4,000 each) for use by himself and his family. These lots are included in Hal's gross estate and a deduction of $4,000 is allowed the estate.

If the value of the gross estate is lower on the alternate valuation date than on the date of death, then the alternate valuation must be used.

Frank owns an insurance policy on the life of Cynthia, with Leon as the designated beneficiary. Upon Cynthia's prior death, Frank is treated as making a gift of the insurance proceeds to Leon.

Mitch pays the surgeon and the hospital for his aunt's gall bladder operation. The transfer is not subject to the gift tax.

Which, if any, of the following is a correct statement regarding the filing of a gift tax return (Form 709)?

Concerning the formula for the Federal estate tax:

The election of the alternate valuation date cannot affect the amount of a charitable deduction allowed to an estate for a bequest to a qualified charity.

Byron and Amanda are heirs of the Nelson estate. Although each receives a $20,000 bequest, they pay different amounts of inheritance tax. Explain the possible reason for the discrepancy.

The current $5 million exemption equivalent applies to both the Federal estate and gift taxes.

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

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Exam 18: The Federal Gift and Estate Taxes

The election of the alternate valuation date does not include any income earned by the property after the date the deceased owner died.

In 2010 and with $100,000, Ronald establishes a joint savings account with his cousin, Allison. In 2011, Allison withdraws the $100,000 and disappears. Ronald made a gift to Allison in 2011.

Among the assets included in Taylor's gross estate are the following.

When Travis learns he is seriously ill, he transfers an insurance policy on his life (maturity value of $2,000,000) to his wife Alexis. The couple's adult children are the designated beneficiaries of the policy. Has Travis acted wisely?

At the time of his death, Hal owned 10 cemetery lots worth $40,000 ($4,000 each) for use by himself and his family. These lots are included in Hal's gross estate and a deduction of $4,000 is allowed the estate.

If the value of the gross estate is lower on the alternate valuation date than on the date of death, then the alternate valuation must be used.

Frank owns an insurance policy on the life of Cynthia, with Leon as the designated beneficiary. Upon Cynthia's prior death, Frank is treated as making a gift of the insurance proceeds to Leon.

Mitch pays the surgeon and the hospital for his aunt's gall bladder operation. The transfer is not subject to the gift tax.

Which, if any, of the following is a correct statement regarding the filing of a gift tax return (Form 709)?

Concerning the formula for the Federal estate tax:

The election of the alternate valuation date cannot affect the amount of a charitable deduction allowed to an estate for a bequest to a qualified charity.

Byron and Amanda are heirs of the Nelson estate. Although each receives a $20,000 bequest, they pay different amounts of inheritance tax. Explain the possible reason for the discrepancy.

The current $5 million exemption equivalent applies to both the Federal estate and gift taxes.

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters