Identify which of the following statements is false
A. Regardless of how large the gross estate is, the estate tax liability can be completely eliminated if the estate is willed to a charitable organization.
B. The Lifetime Exemption applies only to gifts given.
C. Casualty or theft losses incurred during the administration of the estate are deductible on the estate tax return.
D. The estate tax return is due, ignoring extensions, 9 months after the decedent's date of death.
Which of the following transactions constitutes a taxable gift made by Ellen, a widow, in the current year?
A. Ellen transfers $60,000 to a bank account with Hazel. Hazel does not contribute any money to the account.
B. Ellen deposits $100,000 cash and Dennis deposits $5,000 cash into a joint savings account. Dennis withdraws $20,000.
C. Ellen gives her church $15,000.
D. Ellen pays the hospital medical bills for her friend Paige directly to the hospital.
On February first of this year, Hall learned that he was bequeathed 500 shares of common stock under his father's will. Hall's father had paid $2,500 for the stock 10 years ago and the fair market value of this stock at the date of his father's death was $4,500. However, the stock decreased six months later to a value of $4.000. The executor of the estate elected the alternate valuation date for estate tax purposes. Hall sold the stock later in the year for $4,200. How much gain or loss must Hall include in this tax return for the 500 shares sold?
A. $1,700 LTCG
B. $200 LTCG
C. $300 LTCL
D. $200 STCG
In 2018, Bill gave $60,000 to his sister to pay medical bills; $40,000 to his father to help with household expenses, and $20,000 to his adult son. Bill and his wife elect gift splitting. What is the total of Bill's' taxable gifts (remember the change in the 2018 annual exclusion)?
A. none
B. $15,000
C. $20,000
D. $60,000
Mary Jones died in 2017 with a taxable estate of $6,000,000. What is her estate tax liability?
A. $204,000
B. $2,400,000
C. $0
D. $220,000
Vincent makes the following property transfers in the current year.
· $20,000 for tuition given to the grandson
· $1,000 medical expense for a child paid directly to a hospital\
· $500 donation to the Democratic party
· $10,000 property settlement in conjunction with a divorce
Vincent's gifts for the year before considering the annual gift tax exclusion total
A. $0
B. $21,000
C. $20,000
D. $21,500.
Betty dies on February 20 of the current year. Her estate consisted of the following assets, all valued as of her date of death:
Stock with a basis of $40,000 and a fair market value of $200,000. The stock was purchased in Joint Tenancy with her sister, with Betty paying all of the purchase price.
Land valued at $1,500,000 and a basis of $490,000. The land was purchased with her brother in Joint Tenancy, with her brother paying 60% of the purchase price.
Cash of $70,000
What is Bettyâs gross estate?
A. $870,000.
B. $600,000.
C. $1,770,000.
D. $1,670,000.
Identify which of the following statements is false
A. Regardless of how large the gross estate is, the estate tax liability can be completely eliminated if the estate is willed to a charitable organization.
B. The Lifetime Exemption applies only to gifts given.
C. Casualty or theft losses incurred during the administration of the estate are deductible on the estate tax return.
D. The estate tax return is due, ignoring extensions, 9 months after the decedent's date of death.
Which of the following transactions constitutes a taxable gift made by Ellen, a widow, in the current year?
A. Ellen transfers $60,000 to a bank account with Hazel. Hazel does not contribute any money to the account.
B. Ellen deposits $100,000 cash and Dennis deposits $5,000 cash into a joint savings account. Dennis withdraws $20,000.
C. Ellen gives her church $15,000.
D. Ellen pays the hospital medical bills for her friend Paige directly to the hospital.
On February first of this year, Hall learned that he was bequeathed 500 shares of common stock under his father's will. Hall's father had paid $2,500 for the stock 10 years ago and the fair market value of this stock at the date of his father's death was $4,500. However, the stock decreased six months later to a value of $4.000. The executor of the estate elected the alternate valuation date for estate tax purposes. Hall sold the stock later in the year for $4,200. How much gain or loss must Hall include in this tax return for the 500 shares sold?
A. $1,700 LTCG
B. $200 LTCG
C. $300 LTCL
D. $200 STCG
In 2018, Bill gave $60,000 to his sister to pay medical bills; $40,000 to his father to help with household expenses, and $20,000 to his adult son. Bill and his wife elect gift splitting. What is the total of Bill's' taxable gifts (remember the change in the 2018 annual exclusion)?
A. none
B. $15,000
C. $20,000
D. $60,000
Mary Jones died in 2017 with a taxable estate of $6,000,000. What is her estate tax liability?
A. $204,000
B. $2,400,000
C. $0
D. $220,000
Vincent makes the following property transfers in the current year.
· $20,000 for tuition given to the grandson
· $1,000 medical expense for a child paid directly to a hospital\
· $500 donation to the Democratic party
· $10,000 property settlement in conjunction with a divorce
Vincent's gifts for the year before considering the annual gift tax exclusion total
A. $0
B. $21,000
C. $20,000
D. $21,500.
Betty dies on February 20 of the current year. Her estate consisted of the following assets, all valued as of her date of death:
Stock with a basis of $40,000 and a fair market value of $200,000. The stock was purchased in Joint Tenancy with her sister, with Betty paying all of the purchase price.
Land valued at $1,500,000 and a basis of $490,000. The land was purchased with her brother in Joint Tenancy, with her brother paying 60% of the purchase price.
Cash of $70,000
What is Bettyâs gross estate?
A. $870,000.
B. $600,000.
C. $1,770,000.
D. $1,670,000.
