2200. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #1
Which, if any, of the following is not a characteristic of the Federal gift tax?
a. The alternate valuation date of § 2032 can be elected.
b. A charitable deduction is available.
c. A disclaimer procedure may avoid the tax.
d. A marital deduction is available.
e. None of the above.
2201. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #2
Which, if any, of the following is not a characteristic of the Federal estate tax?
a. A foreign tax credit is available.
b. A credit for tax on prior transfers may be available.
c. Pre-1977 taxable gifts need to be considered.
d. A charitable deduction is available.
e. None of the above.
2202. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #3
Which of the following is not a characteristic of both the Federal gift tax and the Federal estate tax?
a. A charitable deduction is available.
b. A deduction for state death taxes may be available.
c. A marital deduction is available.
d. An exclusion amount is available in computing the tax.
e. None of the above.
2203. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #4
In determining the Federal gift tax on a current gift:
a. Disregard taxable gifts made after 1976.
b. Disregard taxable gifts made before 1977.
c. Include all prior gifts.
d. Claim a credit only for the gift taxes actually paid.
e. None of the above.
2204. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #5
Concerning the formula for the Federal estate tax:
a. The tax base results after any post-1976 taxable gifts are subtracted from the taxable estate.
b. The taxable estate is determined without reduction for any state death taxes paid.
c. Income tax owed by the decedent at the date of death is deducted in arriving at the taxable estate.
d. A separate $5 million exclusion amount is available for each of the Federal gift tax, estate tax, and generation-skipping tax.
e. None of the above statements is true.
2205. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #6
In which of the following situations is Pollys property ownership interest not lost by her prior death?
a. Tenancy by the entirety.
b. Tenancy in common.
c. Joint tenancy.
d. Life estate in an irrevocable trust.
e. Annuitant in a straight-life annuity
2206. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #7
Which, if any, of the following items is subject to indexation (adjusted to reflect inflation)?
a. Monetary amount required to elect the alternate valuation date under § 2032.
b. Unified transfer tax credit.
c. Unified transfer tax rates.
d. Annual exclusion.
e. Choice b. and d. but not a. and c.
2207. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #8
Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date (i.e., § 2032)?
a. The election is made by the executor.
b. Can be elected even though no estate tax return (i.e., Form 706) has to be filed.
c. Can be elected only if it reduces the amount of the gross estate or reduces the estate tax liability.
d. Its election does not affect the income tax basis of property included in the gross estate.
e. None of the above.
2208. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #9
In which, if any, of the following independent situations can the alternate valuation date be elected?
Value of Gross Estate Estate Tax Result
Date of Alternate Date of Alternate
Death Date Death Date
a. $6,000,000 $6,100,000 $400,000 $390,000
b. $5,900,000 $5,800,000 $400,000 $380,000
c. $6,100,000 $6,000,000 $390,000 $400,000
d. $6,200,000 $6,300,000 $500,000 $490,000
e. None of the above
2209. CHAPTER 18THE FEDERAL GIFT AND ESTATE TAXES Question MC #10
At the time of his death, Trent owned some common stock.
Date of Death
Value Six
Value
Months Later
Agua Corporation
$1,500,000
$1,100,000
Orange Corporation
1,300,000
1,400,000
The Aqua Corporation stock is sold by the executor of the estate seven months after Trents death for $1,300,000. If the alternate valuation date is properly elected, the value of Trents estate as to these stocks is:
a. $2,300,000.
b. $2,400,000.
c. $2,500,000.
d. $2,700,000.
e. None of the above.
