18. The election of the alternate valuation date does not include any income earned by the property after the date the deceased owner died.
19. 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.
20. In community property states, allproperty acquired after marriage by either spouse is community property.
21. Sandy pays a local college for her non-dependent boyfriend’s tuition. The payment is subject to the Federal gift tax.
22. Transfers to political organizations are not exempt from the application of the Federal gift tax.
23. Mitch pays the surgeon and the hospital for his aunt’s gall bladder operation. If the aunt is not Mitch’s dependent, the transfer is subject to the gift tax.
24. 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.
25. If interest is provided for in loans between related parties, there is no imputed interest, as a gift loan does not result.
26. For gift tax purposes, a property settlement in consideration of marriage (i.e., prenuptial agreement) is
treated the same as a property settlement incident to a divorce.