Reference no: EM13672173

1. (TCO 9) During 2012, Jason gave $100,000 to his nephew, Matt. If he elects to split the gift with his spouse, Joan, how much is Jason's taxable gift?
$23,000
$37,000
$100,000
$87,000


Question 2.2. (TCO 9) Under which conditions should the alternate valuation date of an estate be elected?
When the alternate valuation date decreases the value of the gross estate and estate tax liability
When the alternate valuation date increases the estate tax liability
When the alternate valuation date increases the value of the gross estate and estate tax liability
Never


Question 3.3. (TCO 9) Donald and Frank (who are not related) acquired land as tenants in common. Donald contributed $300,000, whereas Frank contributed $100,000 of the $400,000 purchase price. How much must be included in Frank's gross estate and probate estate if he were to die in 2012 when the land was valued at $1,200,000?
$1,200,000
$300,000
$400,000
$900,000


Question 4.4. (TCO 9) The major distinguishing factor between an estate and an inheritance tax is
cash versus property transfers.
the party responsible for payment.
business or personal assets.
timing of the transfer involved.


Question 5.5. (TCO 9) Which is a true statement?
The tax base for determining the estate tax is the taxable estate plus all post-1976 taxable gifts.
The tax base for determining the estate tax is the taxable estate less all pre-1976 taxable gifts.
All marital transfers are not taxable due to income filing status.
State and local death taxes are not deductible.


Question 6.6. (TCO 9) Susan makes a gift of assets with a fair market value of $750,000 to her daughter in 2012. She has made annual gifts of $20,000 cash in this and the last 6 years (total 7 years) to her daughter as well as her two sons, and she paid the applicable gift tax on these annual gifts. Presuming no other taxable gifts and before applying the unified tax credit, which is the amount of the taxable gifts for the current year?
$810,000
$771,000
$797,000
$750,000


Question 7.7. (TCO 9) Death taxes fall into which two categories?
Estate and inheritance
Estate and federal
Inheritance and federal
Federal and state


Question 8.8. (TCO 9) How much is subject to the annual exclusion limits of gifts made to any one person during any calendar year in determining the total amount of gifts for the year?
$12,000
$11,000
$13,000
$7500


Question 9.9. (TCO 9) If a person dies while holding outstanding promissory notes issued to him or her by his or her child and the person forgives the notes in their will, which value should be included in the gross estate?
The original value should be included in the gross estate.
The book value should be included in the gross estate.
The fair market value should be included in the gross estate.
They should not be included in the gross estate at all.


Question 10.10. (TCO 9) John dies and his estate receives a distribution from his employer's qualified pension plan of $2 million dollars, consisting of John's contributions of $500,000, his employer's contributions of $750,000, and profits earned by the plan of $750,000. John's estate also receives $300,000 of term life insurance that John's employer maintained for John. How much of this income is subject to tax?
$1,500,000
$2,000,000
$2,300,000
$1,250,000