Question 1

A donee's income tax basis in property received as a gift will include any gift tax paid by the donor.

Accepted Answer

A) True 
 B)False

Question 2

At the time of his death,Rex owned an RV.For valuation purposes,the RV should be included in his gross estate at the price a dealer in RVs would pay for the property.

Accepted Answer

A) True 
 B)False

Question 3

Abigail makes a gift of stock (basis of $600,000;fair market value of $1,200,000)to her son,Spencer.As a result of the transfer,Abigail paid a gift tax of $120,000.What is Spencer's income tax basis in the stock if the gift occurred in 2012?

Accepted Answer

$660,657 [$600,000 +

Question 4

At the time of Corinne's death in 2012,she owned stock in Gray Corporation.The stock is traded on a local exchange with the most recent selling prices as follows.   Presuming no alternate valuation date election,Corinne's gross estate should include a per share value of:

Accepted Answer

A) $108. 
B) $110. 
C) $112. 
D) $120. 
E) None of the above. 
A) $108. 
B) $110. 
C) $112. 
D) $120. 
E) None of the above.

Question 5

In 2010,Sophia sold real estate (adjusted basis of $500,000)for $1,500,000.Under the terms of the sale,she received two notes of $750,000 each,with 9% interest provided.One note is due in 2011 and the other in 2012.She did not elect out of the installment method of recognizing gain.In 2011 and before the first note matures,Sophia gives both notes to her adult children.At this time,the notes are worth a total of $1,400,000.Disregarding the interest element,a tax result of these transactions is:

Accepted Answer

A) A gift to the children of $1,500,000. 
B) Sophia recognizes no gain. 
C) Sophia recognizes a gain of $900,000. 
D) Sophia recognizes a gain of $1,000,000. 
E) None of the above. 
A) A gift to the children of $1,500,000. 
B) Sophia recognizes no gain. 
C) Sophia recognizes a gain of $900,000. 
D) Sophia recognizes a gain of $1,000,000. 
E) None of the above.

Question 6

If a stock redemption is to be carried out,a cross-purchase type of buy and sell agreement must be involved.

Accepted Answer

A) True 
 B)False

Question 7

In 2010,Valerie made a gift of stock (basis of $113,000;fair market value of $413,000)to her grandson,Ryan.As a result of the transfer,Valerie paid a gift tax of $20,000.Ryan's income tax basis in the stock is:

Accepted Answer

A) $118,000 for gain or loss. 
B) $128,000 for gain and $113,000 for loss. 
C) $128,000 for gain or loss. 
D) $133,000 for gain or loss. 
E) None of the above. 
A) $118,000 for gain or loss. 
B) $128,000 for gain and $113,000 for loss. 
C) $128,000 for gain or loss. 
D) $133,000 for gain or loss. 
E) None of the above.

Question 8

Whether an organization is a qualified charity for estate tax purposes depends on its status on the date the transfer takes place,and not when the will is executed.

Accepted Answer

A) True 
 B)False

Question 9

In arriving at the valuation of assets for estate tax purposes,the location of the property must be considered.

Accepted Answer

A) True 
 B)False

A donee's income tax basis in property received as a gift will include any gift tax paid by the donor.

At the time of his death,Rex owned an RV.For valuation purposes,the RV should be included in his gross estate at the price a dealer in RVs would pay for the property.

Abigail makes a gift of stock (basis of $600,000;fair market value of $1,200,000)to her son,Spencer.As a result of the transfer,Abigail paid a gift tax of $120,000.What is Spencer's income tax basis in the stock if the gift occurred in 2012?

At the time of Corinne's death in 2012,she owned stock in Gray Corporation.The stock is traded on a local exchange with the most recent selling prices as follows. Presuming no alternate valuation date election,Corinne's gross estate should include a per share value of:

If a stock redemption is to be carried out,a cross-purchase type of buy and sell agreement must be involved.

In 2010,Valerie made a gift of stock (basis of $113,000;fair market value of $413,000)to her grandson,Ryan.As a result of the transfer,Valerie paid a gift tax of $20,000.Ryan's income tax basis in the stock is:

Whether an organization is a qualified charity for estate tax purposes depends on its status on the date the transfer takes place,and not when the will is executed.

In arriving at the valuation of assets for estate tax purposes,the location of the property must be considered.

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

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

Exam 19: Family Tax Planning

A donee's income tax basis in property received as a gift will include any gift tax paid by the donor.

At the time of his death,Rex owned an RV.For valuation purposes,the RV should be included in his gross estate at the price a dealer in RVs would pay for the property.

Abigail makes a gift of stock (basis of $600,000;fair market value of $1,200,000)to her son,Spencer.As a result of the transfer,Abigail paid a gift tax of $120,000.What is Spencer's income tax basis in the stock if the gift occurred in 2012?

At the time of Corinne's death in 2012,she owned stock in Gray Corporation.The stock is traded on a local exchange with the most recent selling prices as follows. Presuming no alternate valuation date election,Corinne's gross estate should include a per share value of:

If a stock redemption is to be carried out,a cross-purchase type of buy and sell agreement must be involved.

In 2010,Valerie made a gift of stock (basis of $113,000;fair market value of $413,000)to her grandson,Ryan.As a result of the transfer,Valerie paid a gift tax of $20,000.Ryan's income tax basis in the stock is:

Whether an organization is a qualified charity for estate tax purposes depends on its status on the date the transfer takes place,and not when the will is executed.

In arriving at the valuation of assets for estate tax purposes,the location of the property must be considered.

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

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters