Exam 27: The Federal Gift and Estate Taxes

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -Hector transfers funds to his aunt so she can obtain a much needed hip operation.The aunt does not qualify as Hector's dependent.

(Short Answer)

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Question 141

Andrea dies on April 30.Which,if any,of the following items is included in her gross estate?

(Multiple Choice)

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Question 142

Sidney dies and leaves property to his sister Giselle.Thirteen months later,Giselle dies.Giselle's estate can claim a full credit for any Federal estate taxes paid by Sidney's estate as to amounts passing to Giselle.

(True/False)

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Question 143

The purpose of the marital deduction is to defer any estate tax liability until the second spouse dies.

(True/False)

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Question 144

In 2015 and with $100,000,Ronald establishes a joint savings account with his cousin,Allison.In 2017,Allison withdraws the $100,000 and disappears.Ronald made a gift to Allison in 2017.

(True/False)

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Question 145

Concerning the Federal tax on generation-skipping transfers:

(Multiple Choice)

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Question 146

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

(True/False)

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Question 147

A father wants to give a parcel of land to his two children.If he wants the survivor to have sole ownership,he should list ownership of the property as joint tenants.

(True/False)

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Question 148

Barry pays State University for his dependent daughter's room and board.Barry has made a transfer that is subject to the Federal gift tax.

(True/False)

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Question 149

Georgia owns an insurance policy on the life of Jake,with Scarlet as the designated beneficiary.Upon Scarlet's death,no transfer tax consequences result.

(True/False)

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Question 150

Which,if any,of the following is not a characteristic of the Federal gift tax?

(Multiple Choice)

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Question 151

To make the election to split gifts,spouses must file a Form 709 (Federal gift tax return).

(True/False)

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Question 152

Match each statement with the correct choice. Some choices may be used more than once or not at all. a.In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother. b.Death does not defeat an owner's interest in property. c.Exists only if husband and wife are involved. d.A type of state tax on transfers by death. e.Must decrease the amount of the gross estate. f.Annual exclusion not allowed. g.Cumulative in effect. h.Right of survivorship present as to type of ownership. i.Overrides the terminable interest rule of the marital deduction. j.Exemption equivalent. k.Bypass amount. l.No correct match provided. -Community property

(Short Answer)

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Question 153

Cole purchases land for $500,000 and transfers it by gift to his two daughters,Madison and Paige,as equal joint tenants with the right of survivorship.Ten years later,when the land is worth $2,000,000,Madison predeceases Paige.Madison's executor includes none of the value of the land in her gross estate,as she contributed nothing toward its cost.Do you agree?

(Short Answer)

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Question 154

Classify each of the independent statements appearing below. -Note receivable issued by a grandson and forgiven by the decedent in her will.

(Multiple Choice)

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Question 155

Mark dies on March 6.Which,if any,of the following items is not included in his gross estate?

(Multiple Choice)

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Question 156

Match each statement with the correct choice. Some choices may be used more than once or not at all. a.In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother. b.Death does not defeat an owner's interest in property. c.Exists only if husband and wife are involved. d.A type of state tax on transfers by death. e.Must decrease the amount of the gross estate. f.Annual exclusion not allowed. g.Cumulative in effect. h.Right of survivorship present as to type of ownership. i.Overrides the terminable interest rule of the marital deduction. j.Exemption equivalent. k.Bypass amount. l.No correct match provided. -Joint tenancy

(Short Answer)

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Question 157

In which of the following independent situations has Jean made a gift?

(Multiple Choice)

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Question 158

Calvin's will passes $800,000 of cash to his widowed sister,Muriel.The estate tax attributable to the cash is $110,000.Muriel dies five years later,and the estate tax generated by the $800,000 is $100,000.How much of a credit for tax on prior transfers will Muriel's estate be allowed?

(Short Answer)

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Question 159

At the time of her death on June 6,Mary owned the following assets. As to these transactions,how much is included in Mary's gross estate?

(Essay)

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Question 160

Showing 141 - 160 of 167

Exam 27: The Federal Gift and Estate Taxes

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -Hector transfers funds to his aunt so she can obtain a much needed hip operation.The aunt does not qualify as Hector's dependent.

Andrea dies on April 30.Which,if any,of the following items is included in her gross estate?

Sidney dies and leaves property to his sister Giselle.Thirteen months later,Giselle dies.Giselle's estate can claim a full credit for any Federal estate taxes paid by Sidney's estate as to amounts passing to Giselle.

The purpose of the marital deduction is to defer any estate tax liability until the second spouse dies.

In 2015 and with $100,000,Ronald establishes a joint savings account with his cousin,Allison.In 2017,Allison withdraws the $100,000 and disappears.Ronald made a gift to Allison in 2017.

Concerning the Federal tax on generation-skipping transfers:

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

A father wants to give a parcel of land to his two children.If he wants the survivor to have sole ownership,he should list ownership of the property as joint tenants.

Barry pays State University for his dependent daughter's room and board.Barry has made a transfer that is subject to the Federal gift tax.

Georgia owns an insurance policy on the life of Jake,with Scarlet as the designated beneficiary.Upon Scarlet's death,no transfer tax consequences result.

Which,if any,of the following is not a characteristic of the Federal gift tax?

To make the election to split gifts,spouses must file a Form 709 (Federal gift tax return).

Classify each of the independent statements appearing below. -Note receivable issued by a grandson and forgiven by the decedent in her will.

Mark dies on March 6.Which,if any,of the following items is not included in his gross estate?

In which of the following independent situations has Jean made a gift?

Calvin's will passes $800,000 of cash to his widowed sister,Muriel.The estate tax attributable to the cash is $110,000.Muriel dies five years later,and the estate tax generated by the $800,000 is $100,000.How much of a credit for tax on prior transfers will Muriel's estate be allowed?

At the time of her death on June 6,Mary owned the following assets. ​ As to these transactions,how much is included in Mary's gross estate?

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, cost Recovery, amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxable Exchanges

Property Transactions, capital Gains and Losses, sec1231, and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganization

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Income Taxation of Trusts and Estates

Filters

At the time of her death on June 6,Mary owned the following assets. As to these transactions,how much is included in Mary's gross estate?