FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: Transfer Taxes and Wealth Planning

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Christopher's residence was damaged by a storm during the administration of his estate.Christopher's executor paid $120,000 to repair the residence after the storm.Which of the following is a true statement?

A) A casualty loss of $120,000 can be deducted on Christopher's final individual income tax return.
B) The casualty loss deduction is limited to the loss in excess of 10 percent of Christopher's AGI.
C) Christopher's executor has the option of deducting a loss of $120,000 on the estate tax return or on the estate's income tax return.
D) No casualty loss deduction is available for calculating the estate tax.
E) None of the choices are true.

F) A) and C)
G) B) and C)

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

The probate estate will include the total value of all real property owned by the decedent at the time of death regardless of whether the decedent co-owned the property as tenants in common or as joint tenants with the right of survivorship.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

The estate and gift taxes share several common features.Which of the following characteristics are common to both the estate and gift taxes?

A serial gift strategy consists of arranging a trust to maximize the value of the applicable credit.

The testamentary transfer of property to a qualified charity is deductible in calculating the taxable estate without any ceiling limitation.

A present interest is the right to currently enjoy property or receive income payments from property.

Tracey is unmarried and owns $7 million in stock and bonds.What is the result if Tracey dies this year and leaves all of her property to a qualified charity?

Isaac is married and Isaac and his spouse agree that they want to transfer the maximum amount of cash to each of their four children and six grandchildren.How much cash in total can Isaac and his spouse transfer to his children and grandchildren each year without creating any taxable gifts?

Last year Brandon opened a savings account with a deposit of $45,000.The account was in the name of Brandon and Melanie,joint tenancy with the right of survivorship.Melanie did not contribute to the account,but this year she withdrew $18,000.Has Brandon made a taxable gift to Melanie,and if so,in what amount?

A gift tax return does not need to be filed unless the taxpayer has made current gifts in excess of the applicable credit.

The gift tax is imposed on intervivos (lifetime)transfers.

Which of the following is a completed taxable gift?

The executor of Isabella's estate incurred administration expenses of $32,000 and paid $5,000 in funeral expenses.The executor charged the estate for $24,000 in fees.What is the maximum amount Isabella's estate can deduct in computing the adjusted gross estate?

Joshua and David purchased real property for $500,000 as equal tenants in common.Although they are listed as equal co-owners,Joshua was only able to provide $200,000 of the purchase price.David treated the additional $100,000 of his contribution to the purchase price as a gift to Joshua.If the property is worth $2.5 million at Joshua's death,what amount would be included in Joshua's estate?

The gift-splitting election only applies to gifts made by taxpayers who reside in community property states.

The probate estate consists of all property owned by the decedent that is excluded from the gross estate.

Property is included in the gross estate at the value a willing buyer would pay a willing seller,neither being under any compulsion to buy or to sell,and both having reasonable knowledge of the relevant facts.

At her death,Tricia owned a life insurance policy on her life that paid her daughter $500,000 upon her death.The policy was only valued at $25,000 prior to Tricia's death.What amount,if any,is included in Tricia's gross estate?

This year Don and his son purchased real estate for an investment.The price of the property was $500,000,and the title named Don and his son as joint tenants with the right of survivorship.Don provided $320,000 of the purchase price and his son provided the remaining $180,000.Has Don made a taxable gift and,if so,in what amount?

This year,Brent by himself purchased season baseball tickets in the exclusive sky club.The price of the tickets was $60,000,and Brent divided the tickets equally with his two brothers (Brent gave one-third of the tickets to each brother) .Has Brent made a taxable gift and,if so,in what amount?