Question 1

Match each statement with the correct choice. Some choices may be used more than once or not at all
-Alternate valuation date (§ 2032)

Accepted Answer

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) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) A) and D)
N) A) and J)

Question 2

Classify each statement appearing below
-Clarence pays the medical providers (e.g., physicians, hospital)  for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Accepted Answer

A)  No taxable transfer occurs
B)  Gift tax applies
C)  Estate tax appliesD) A) and C)
E) B) and C)

Question 3

The current top Federal transfer tax rate of 40% is the highest rate ever imposed.

Accepted Answer

A) True 
 B)False

Question 4

Becky made taxable gifts in 2013, 2014, and 2015. In computing the gift tax on the 2015 gift, she must consider all of the prior taxable gifts.

Accepted Answer

A) True 
 B)False

Question 5

Classify each statement appearing below
-In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Accepted Answer

A)  No taxable transfer occurs
B)  Gift tax applies
C)  Estate tax appliesD) B) and C)
E) All of the above

Question 6

Classify each of the independent statements appearing below
-Decedent owned a policy on the life of his spouse with himself as the designated beneficiary. The spouse survives.

Accepted Answer

A)  Some or all of the interest included in the decedent's gross estate.
B)  None of the interest included in the decedent's gross estate.C) A) and B)
D) undefined

Question 7

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 not included in Hal's gross estate and no deduction is allowed the estate.

Accepted Answer

A) True 
 B)False

Question 8

Classify each statement appropriately
-Casualty loss to property already distributed to an heir.

Accepted Answer

A)  Deductible from the gross estate in arriving at the taxable estate.
B)  Not deductible from the gross estate in arriving at the taxable estate.C) A) and B)
D) undefined

Question 9

Andrea dies on April 30, 2015. Which, if any, of the following items is included in her gross estate?

Accepted Answer

A)   Rents for the month of May (received on May 2, 2015)  on an apartment building she owned.
B)   Rents for the month of March (received on May 2, 2015)  on an apartment building she owned.
C)   Insurance recovery from a fire which occurred on November 1, 2015, and destroyed Andrea's residence.
D)   A loan made by Andrea to her daughter and forgiven by Andrea in 2012.
E)   None of the above.F) B) and C)
G) A) and C)

Question 10

Classify each of the independent statements appearing below
-Surviving spouse's share of the community property.

Accepted Answer

A)  Some or all of the interest included in the decedent's gross estate.
B)  None of the interest included in the decedent's gross estate.C) A) and B)
D) undefined

Question 11

A Federal gift tax return does not have to be filed if no gift tax is payable.

Accepted Answer

A) True 
 B)False

Question 12

Which, if any, of the following items is subject to indexation (adjusted to reflect inflation) ?

Accepted Answer

A)   The election to split gifts under § 2513.
B)   The limitation placed on the amount allowed as a charitable contribution for estate tax purposes (§ 2055) .
C)   Annual exclusion.
D)   Unified transfer tax rates.
E)   None of the above.F) C) and E)
G) C) and D)

Question 13

The purpose of the marital deduction is to place married decedents in common law states on par with those in community property jurisdictions.

Accepted Answer

A) True 
 B)False

Question 14

Classify each of the independent statements appearing below
-Land held as tenants by the entirety with surviving spouse. Decedent provided none of the funds.

Accepted Answer

A)  Some or all of the interest included in the decedent's gross estate.
B)  None of the interest included in the decedent's gross estate.C) A) and B)
D) undefined

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Waldo is his mother's sole heir and is the designated executor of her estate. Although the alternate valuation date would yield a smaller gross estate and less estate tax liability, the § 2032 election is not made. Instead, Waldo files a Form 706 for his mother's estate using higher date of death values. Why?

Accepted Answer

Presuming Waldo is acting intelligently,...

Question 17

Match each statement with the correct choice. Some choices may be used more than once or not at all
-Community property

Accepted Answer

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) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) F) and K)
N) I) and K)

Question 18

Classify each statement appearing below
-Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Nadine predeceases Horace.

Accepted Answer

A)  No taxable transfer occurs
B)  Gift tax applies
C)  Estate tax appliesD) A) and B)
E) A) and C)

Question 19

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date ?

Accepted Answer

A)   The election is made by the executor.
B)   Can be elected even though no estate tax return has to be filed.
C)   Can be elected only if it reduces the amount of the gross estate or reduces the estate tax liability.
D)   Its election does not affect the income tax basis of property included in the gross estate.
E)   None of the above.F) A) and D)
G) None of the above

Question 20

Concerning the election to split gifts under § 2513, which of the following statements is incorrect?

Accepted Answer

A)   The election can be made even if the parties are not married for the entire year of the gift.
B)   The election does take into account any prior taxable gifts made by either spouses.
C)   The election doubles the number of annual exclusions available.
D)   The election has no utility in a community property jurisdiction.
E)   The election can be made even if the parties are divorced as long as neither spouse has remarried by the end of the year.F) A) and D)
G) A) and E)

Exam 18: The Federal Gift and Estate Taxes

Match each statement with the correct choice. Some choices may be used more than once or not at all -Community property

Correct Answer
verified

The current top Federal transfer tax rate of 40% is the highest rate ever imposed.

Correct Answer
verified

Which, if any, of the following items is subject to indexation (adjusted to reflect inflation) ?

Correct Answer
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Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date ?

Correct Answer
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Classify each of the independent statements appearing below -Land held as tenants by the entirety with surviving spouse. Decedent provided none of the funds.

Correct Answer
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The purpose of the marital deduction is to place married decedents in common law states on par with those in community property jurisdictions.

Correct Answer
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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.

Correct Answer
verified

Concerning the election to split gifts under § 2513, which of the following statements is incorrect?

Correct Answer
verified

Match each statement with the correct choice. Some choices may be used more than once or not at all -Alternate valuation date (§ 2032)

Correct Answer
verified

Classify each of the independent statements appearing below -Surviving spouse's share of the community property.

Correct Answer
verified

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 not included in Hal's gross estate and no deduction is allowed the estate.

Correct Answer
verified

Classify each statement appropriately -Casualty loss to property already distributed to an heir.

Correct Answer
verified

Correct Answer
verified
Presuming Waldo is acting intelligently,...
View Answer

Becky made taxable gifts in 2013, 2014, and 2015. In computing the gift tax on the 2015 gift, she must consider all of the prior taxable gifts.

Correct Answer
verified

A Federal gift tax return does not have to be filed if no gift tax is payable.

Correct Answer
verified

Classify each statement appearing below -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Nadine predeceases Horace.

Correct Answer
verified

Classify each of the independent statements appearing below -Decedent owned a policy on the life of his spouse with himself as the designated beneficiary. The spouse survives.

Correct Answer
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Classify each statement appearing below -Clarence pays the medical providers (e.g., physicians, hospital) for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Correct Answer
verified

Andrea dies on April 30, 2015. Which, if any, of the following items is included in her gross estate?

Correct Answer
verified

Classify each statement appearing below -In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Correct Answer
verified

Exam 18: The Federal Gift and Estate Taxes

Match each statement with the correct choice. Some choices may be used more than once or not at all -Community property

Correct AnswerverifiedShow Answer

The current top Federal transfer tax rate of 40% is the highest rate ever imposed.

Correct AnswerverifiedShow Answer

Which, if any, of the following items is subject to indexation (adjusted to reflect inflation) ?

Correct AnswerverifiedShow Answer

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date ?

Correct AnswerverifiedShow Answer

Classify each of the independent statements appearing below -Land held as tenants by the entirety with surviving spouse. Decedent provided none of the funds.

Correct AnswerverifiedShow Answer

The purpose of the marital deduction is to place married decedents in common law states on par with those in community property jurisdictions.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Concerning the election to split gifts under § 2513, which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all -Alternate valuation date (§ 2032)

Correct AnswerverifiedShow Answer

Classify each of the independent statements appearing below -Surviving spouse's share of the community property.

Correct AnswerverifiedShow Answer

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 not included in Hal's gross estate and no deduction is allowed the estate.

Correct AnswerverifiedShow Answer

Classify each statement appropriately -Casualty loss to property already distributed to an heir.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedPresuming Waldo is acting intelligently,...View AnswerShow Answer

Becky made taxable gifts in 2013, 2014, and 2015. In computing the gift tax on the 2015 gift, she must consider all of the prior taxable gifts.

Correct AnswerverifiedShow Answer

A Federal gift tax return does not have to be filed if no gift tax is payable.

Correct AnswerverifiedShow Answer

Classify each statement appearing below -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Nadine predeceases Horace.

Correct AnswerverifiedShow Answer

Classify each of the independent statements appearing below -Decedent owned a policy on the life of his spouse with himself as the designated beneficiary. The spouse survives.

Correct AnswerverifiedShow Answer

Classify each statement appearing below -Clarence pays the medical providers (e.g., physicians, hospital) for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Correct AnswerverifiedShow Answer

Andrea dies on April 30, 2015. Which, if any, of the following items is included in her gross estate?

Correct AnswerverifiedShow Answer

Classify each statement appearing below -In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Correct AnswerverifiedShow Answer

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Presuming Waldo is acting intelligently,...
View Answer

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