Concerning the Federal tax on generation-skipping transfers: a. The tax applies in addition to any applicable gift or estate tax. b. The tax applies in lieu of any applicable gift or estate tax. c. The tax is applied at a flat 33 percent tax rate. d. The annual gift tax exclusion cannot be used to reduce the tax.

OneClass: Concerning the Federal tax on generation-skipping transfers: a. The tax applies in addition...

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.
Â· $20,000 for tuition given to the grandson
Â· $1,000 medical expense for a child paid directly to a hospital\
Â· $500 donation to the Democratic party
Â· $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.

1. Income earned but unpaid at the time of a decedentâsdeath is deemed to be income in respect of a decedent (IRD). Whichof the following statements concerning IRD is correct?

a) The income must be reported on the decedentâs final federalincome tax return.

b) The income is taxable to the person or entity receivingit.

c) IRD includes income earned by the executor on estateassets.

d) The character of the income as taxable or nontaxable ischanged when passed to the recipient.

2. The federal estate tax is

a) A tax on the right of a decedent to transfer property

b) A tax on the right of a beneficiary to inherit property

c) A tax levied only on a decedentâs probate property

d) An excise tax levied on the privilege of accumulatingwealth.

3. The owner of a successful business wishes to retireand sell the business to her daughter. The business is worthsubstantially more than the ownerâs basis. The owner and herdaughter have agreed to an installment sale. Which of the followingstatements concerning this sale iscorrect?

a) The sale price should be lower than the fair market value ofthe business to avoid estate or gift tax complications.

b) The installment period must be limited to 10 years or less toavoid adverse estate tax consequences.

c) The principal payments payable after the sellerâs death avoidestate inclusion.

d) The interest rate specified should be reasonable to avoidadverse gift or income tax consequences.

4. Which of the following statements concerningguardians is correct?

a) A guardian for personal care is called a guardian adlitem

b) A special guardian can be appointed by the court to protect aminorâs rights in a legal proceeding.

c) A guardian named in a deceased parentâs will is binding onthe court.

d) A guardian receives the legal authority to act from thedeceased parentâs will.

taupemoose569

Identify which of the following statements is false

A. The Lifetime Exemption applies only to gifts given.
B. Casualty or theft losses incurred during the administration of the estate are deductible on the estate tax return.
C. 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. $200 LTCG
B. $300 LTCL
C. $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. $220,000

Vincent makes the following property transfers in the current year.
Â· $20,000 for tuition given to the grandson
Â· $1,000 medical expense for a child paid directly to a hospital\
Â· $500 donation to the Democratic party
Â· $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

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?
$870,000.
$1,770,000.
$1,670,000.

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	a.	The tax applies in addition to any applicable gift or estate tax.
	b.	The tax applies in lieu of any applicable gift or estate tax.
	c.	The tax is applied at a flat 33 percent tax rate.
	d.	The annual gift tax exclusion cannot be used to reduce the tax.