Question 1

The current top Federal transfer tax rate of 35% is not the highest rate ever imposed.

Accepted Answer

A) True 
 B)False

Question 2

The current Federal transfer tax rate of 35% is the lowest top rate ever imposed.

Accepted Answer

A) True 
 B)False

Question 3

The current $5.12 million exemption equivalent applies to both the Federal estate and gift taxes.

Accepted Answer

A) True 
 B)False

Question 4

At one point,the tax rates applicable to transfers by gift were lower than those applying to transfers by death.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements relating to the Federal gift tax is incorrect?

Accepted Answer

A) The deemed paid credit allowed for a prior taxable gift cannot be less than the gift tax that was actually paid. 
B) The issuance of an effective disclaimer by an heir will pass the property to another without being subject to the Federal gift tax. 
C) The annual exclusion is not available for gifts of future interests. 
D) Up to 5 years of annual exclusions can be available for gifts involving § 529 plans (qualified tuition programs). 
E) None of the above. 
A) The deemed paid credit allowed for a prior taxable gift cannot be less than the gift tax that was actually paid. 
B) The issuance of an effective disclaimer by an heir will pass the property to another without being subject to the Federal gift tax. 
C) The annual exclusion is not available for gifts of future interests. 
D) Up to 5 years of annual exclusions can be available for gifts involving § 529 plans (qualified tuition programs). 
E) None of the above.

Question 6

Barry pays State University for his dependent daughter's room and board.Barry has not made a transfer that is subject to the Federal gift tax.

Accepted Answer

A) True 
 B)False

Question 7

In 2010,Katherine made some taxable gifts upon which she paid a Federal gift tax of $96,000.If Katherine dies in 2012,the $96,000 is included in her gross estate under the "gross up" rule.

Accepted Answer

A) True 
 B)False

Question 8

José,a citizen and resident of Panama,makes a gift of ExxonMobil stock to his children.Because ExxonMobil is a U.S.corporation,José will be subject to the U.S.Federal gift tax.

Accepted Answer

A) True 
 B)False

Question 9

In 2012,grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter.The maximum annual exclusion allowed to them is $130,000 ($26,000 ´ 5 years).

Accepted Answer

A) True 
 B)False

Question 10

The U.S.has death tax conventions (i.e. ,treaties)with most of the countries of the world.

Accepted Answer

A) True 
 B)False

The current top Federal transfer tax rate of 35% is not the highest rate ever imposed.

The current Federal transfer tax rate of 35% is the lowest top rate ever imposed.

The current $5.12 million exemption equivalent applies to both the Federal estate and gift taxes.

At one point,the tax rates applicable to transfers by gift were lower than those applying to transfers by death.

Which of the following statements relating to the Federal gift tax is incorrect?

Barry pays State University for his dependent daughter's room and board.Barry has not made a transfer that is subject to the Federal gift tax.

In 2010,Katherine made some taxable gifts upon which she paid a Federal gift tax of $96,000.If Katherine dies in 2012,the $96,000 is included in her gross estate under the "gross up" rule.

José,a citizen and resident of Panama,makes a gift of ExxonMobil stock to his children.Because ExxonMobil is a U.S.corporation,José will be subject to the U.S.Federal gift tax.

In 2012,grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter.The maximum annual exclusion allowed to them is $130,000 ($26,000 ´ 5 years).

The U.S.has death tax conventions (i.e. ,treaties)with most of the countries of the world.

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

Exam 18: The Federal Gift and Estate Taxes

The current top Federal transfer tax rate of 35% is not the highest rate ever imposed.

The current Federal transfer tax rate of 35% is the lowest top rate ever imposed.

The current $5.12 million exemption equivalent applies to both the Federal estate and gift taxes.

At one point,the tax rates applicable to transfers by gift were lower than those applying to transfers by death.

Which of the following statements relating to the Federal gift tax is incorrect?

Barry pays State University for his dependent daughter's room and board.Barry has not made a transfer that is subject to the Federal gift tax.

In 2010,Katherine made some taxable gifts upon which she paid a Federal gift tax of $96,000.If Katherine dies in 2012,the $96,000 is included in her gross estate under the "gross up" rule.

José,a citizen and resident of Panama,makes a gift of ExxonMobil stock to his children.Because ExxonMobil is a U.S.corporation,José will be subject to the U.S.Federal gift tax.

In 2012,grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter.The maximum annual exclusion allowed to them is $130,000 ($26,000 ´ 5 years).

The U.S.has death tax conventions (i.e. ,treaties)with most of the countries of the world.

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