Paul a US citizen will avoid the Federal estate tax if he becomes a Canadian

Paul a us citizen will avoid the federal estate tax

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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. Trueb. FalseANSWER:FalseRATIONALE: As long as Paul is a U.S. citizen, his residence and the situs of his property makes no difference for estate tax purposes.12. Becky made taxable gifts in 2000, 2010, and 2013. In computing the gift tax on the 2013 gift, she must consider all of the prior taxable gifts.13. For Federal estate tax purposes, the gross estate cannot include property the decedent no longer owns.
Chapter 18: The Federal Gift and Estate Taxes 14. For Federal estate tax purposes, the gross estate does not include property that will pass to a surviving spouse.15. For both the Federal gift and estate tax, a deduction is allowed for certain transfers to a spouse.a. Trueb. FalseANSWER: True16. In the past, the amount of the unified tax credit always has been the same for both transfers by gift and transfers by death.17. For Federal estate and gift tax purposes, the exemption equivalent is the same thing as the exclusion amount.18. If the value of the gross estate is lower on the alternate valuation date than on the date of death, the date of death valuation cannot be used.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. Trueb. FalseANSWER:FalseRATIONALE: All assets are valued on the alternate valuation date if § 2032 is elected. In such cases dateof death valuation is not utilized.
Chapter 18: The Federal Gift and Estate Taxes
Chapter 18: The Federal Gift and Estate Taxes

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