Trusts, Estates, and Professional Standards
Compare and contrast gift, estate, and generation-skipping transfer taxes with income tax
Explain the use of trusts in estate tax planning
Explain the administrative procedures of the IRS and preparer standards
Week 6 Quiz
In the current year, Cesar, who is single, gives $26,000 to each of his 20 nieces and
nephews for a total property transfer of $520,000.
Cesar's taxable gifts total
Barbara sells a house with a FMV of $170,000 to her daughter for $120,000.
transaction, Barbara is deemed to have made a gift (before the annual exclusion) of
In the current year, Bonnie, who is single, sells stock valued at $60,000 to Linda for
$15,000. Later that year, Bonnie gives Linda $25,000 in cash.
Bonnie's taxable gifts
from these transfers total
Identify which of the following statements is true.
A taxable gift may occur when property is sold for less than its FMV in the
normal course of business.
An individual can inadvertently make a gift by underestimating a property's fair
market value and selling it to a relative for a price below its fair market value.
The statutory exemption from the gift tax for payments for medical care requires
that the payment be made for a relative.