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Law question data bank




Question;2104. Question TF #1;Sometimes also;known as transaction taxes, Federal gift and estate taxes are excise taxes.;a.;True;b. False;2105. Question TF #2;A lifetime transfer that is supported by full and adequate consideration is not;a gift.;a.;True;b. False;2106. Question TF #3;One of the reasons the estate tax was enacted was to prevent the avoidance of;the gift tax by the making of ?deathbed gifts.?;a.;True;b. False;2107. Question TF #4;At one point, the tax rates applicable to transfers by gift were lower than;those applying to transfers by death.;a.;True;b. False;2108. Question TF #5;Some states;impose inheritance taxes, but the Federal tax system does not.;a.;True;b. False;2109. Question TF #6;An estate tax is a tax on the right of an heir to receive property on the death;of the owner.;a.;True;b. False;2110. Question TF #7;A few states impose both an estate tax and;an inheritance tax.;a.;True;b. False;2111. Question TF #8;In some cases, the Federal gift tax can be imposed on someone other than the;donor.;a.;True;b. False;2112. Question TF #9;Jos?, a citizen and resident of Panama, makes a gift of ExxonMobil stock to his;children. Because ExxonMobil is a U.S. corporation, Jos? will be subject to the;U.S. Federal gift tax.;a.;True;b. False;2113. Question TF #10;Kim, a resident and citizen of Korea, dies during an operation at the Mayo;Clinic in Rochester (MN). Because Kim died in the U.S., he will be subject to;the Federal estate tax.;a.;True;b. False;2114. Question TF #11;Paul, a U.S. citizen, will avoid the Federal estate tax if he becomes a;Canadian resident and owns no property located in the U.S. at the time of his;death.;a.;True;b. False;2115. Question TF #12;Becky made taxable gifts in 1974, 2010, and 2011. In computing the gift tax on;the 2011 gift, she must consider all of the prior taxable gifts.;a.;True;b. False;2116. Question TF #13;For Federal estate tax purposes, the gross estate may include property the;decedent does not own.;a.;True;b. False;2117. Question TF #14;For Federal estate tax purposes, the gross estate does not include property;that will pass to a surviving spouse.;a.;True;b. False;2118. Question TF #15;For both the Federal gift and estate tax, a deduction is allowed for certain;transfers to charity.;a.;True;b. False;2119. Question TF #16;In the past, the amount of the unified tax credit has been the same for both;transfers by gift and transfers by death.;a.;True;b. False;2120. Question TF #17;If the value of the gross estate is lower on the alternate valuation date than;on the date of death, then the alternate valuation must be used.;a.;True;b. False;2121. Question TF #18;For Federal estate and gift tax purposes, the exclusion amount is the same thing as the exemption equivalent.;a.;True;b. False;2122. Question TF #19;Under the alternate valuation date election, each asset in the gross estate is;valued at the lesser of the date of death value or six months thereafter.;a.;True;b. False;2123. Question TF #20;Daniel?s will provides that all of his property passes to a trust, life estate;to his wife, remainder to charity. If Daniel?s executor does not make a QTIP election, the use of the alternate valuation;date is possible.;a.;True;b. False;2124. Question TF #21;The election of the alternate valuation date cannot affect the amount of a;charitable deduction allowed to an estate for a bequest to a qualified charity.;a.;True;b. False;2125. Question TF #22;The election of the alternate valuation date does not include any income earned;by the property after the date the deceased owner died.;a.;True;b. False;2126. Question TF #23;A father wants to give a parcel of land to his two children. If he wants the;survivor to have sole ownership, he should list ownership of the property as;joint tenants.;a.;True;b. False;2127. Question TF #24;The death of a tenant in common will defeat his or her interest in the;property.;a.;True;b. False;2128. Question TF #25;In community property states, all;property acquired after marriage by either spouse is community property.;a.;True;b. False;2129. Question TF #26;Sandy pays a local college for her non-dependent boyfriend?s tuition. The;payment is not subject to the Federal gift tax.;a.;True;b. False;2130. Question TF #27;Barry pays State University for his daughter?s room and board. Barry has made a;transfer that is subject to the Federal gift tax.;a.;True;b. False;2131. Question TF #28;Transfers to;political organizations are not exempt from the application of the Federal gift;tax.;a.;True;b. False;2132. Question TF #29;Pauline sells antique furniture to her daughter, Nicole, for $10,000. If the;furniture is really worth $100,000, Pauline has made a gift to Nicole of $100,000.;a.;True;b. False;2133. Question TF #30;Mitch pays the surgeon and the hospital for his aunt?s gall bladder operation.;The transfer is not subject to the gift tax.;a.;True;b. False;2134. Question TF #31;Sam purchases a U.S. savings bond which he registers as follows: ?Sam, payable;to Don upon Sam?s death.? A gift occurs when Sam dies.;a.;True;b. False;2135. Question TF #32;If interest is provided for in loans between related parties, there is no;imputed interest, as a gift loan does not result.;a.;True;b. False;2136. Question TF #33;For gift tax purposes, a property settlement in consideration of marriage;(i.e., prenuptial agreement) is not treated the same as a property settlement;incident to a divorce.;a.;True;b. False;2137. Question TF #34;A timely issued;disclaimer by an heir transfers the property to someone else without a Federal;gift tax result.;a.;True;b. False;2138. Question TF #35;Under his grandfather?s will, Tad is entitled to receive shares of Kroger;Corporation. For Federal tax purposes, Tad is allowed to disclaim some of these;shares and accept the others.;a.;True;b. False;2139. Question TF #36;A transfer in trust in which the trustee has the power to accumulate income is;not a gift of a future interest if the trustee never exercises the power.;a.;True;b. False;2140. Question TF #37;In 2011, grandparents contribute jointly owned funds to a ? 529 qualified;tuition plan on behalf of their granddaughter. The maximum annual exclusion;allowed to them is $130,000 ($26,000 ? 5 years).;a.;True;b. False;2141. Question TF #38;Although qualified tuition plans under ? 529 are treated favorably for gift tax;purposes, such plans are subject to estate tax consequences upon the grantor?s;death.;a.;True;b. False;2142. Question TF #39;To make the election to split gifts under ? 2513, spouses must file a Form 709;(Federal gift tax return).;a.;True;b. False;2143. Question TF #40;A husband and wife make a gift of their vacation home to their adult children.;If the property is owned jointly by them, the gift-splitting election need not;be made.;a.;True;b. False;2144. Question TF #41;Under certain circumstances, the gift-splitting election can be made even;though the electing spouses are no longer married to each other.;a.;True;b. False;2145. Question TF #42;The use of the election to split gifts under ? 2513 may be necessary for;spouses who live in community property states.;a.;True;b. False;2146. Question TF #43;If a donor has a fiscal year of July 1-June 30 for income tax purposes, this;changes the normal filing date for Form 709.;a.;True;b. False;2147. Question TF #44;A Federal gift tax return may have to be filed even if no gift tax is payable.;a.;True;b. False;2148. Question TF #45;Iris dies intestate (i.e., without a will). All of her property passes to her;heirs in accordance with the order of distribution prescribed under Federal;law.;a.;True;b. False;2149. Question TF #46;In most cases, the gross estate of a decedent is larger than the probate;estate.;a.;True;b. False;2150. Question TF #47;Interest on state and local bonds is subject to neither the Federal income tax;nor the Federal estate tax.;a.;True;b. False


Paper#59259 | Written in 18-Jul-2015

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