The election of the alternate valuation date does not include any income earned

The election of the alternate valuation date does not

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18. The election of the alternate valuation date does not include any income earned by the property after the date the deceased owner died. True False 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. True False 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. True False
27. A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result. 28. Under his grandfather’s will, Tad is entitled to receive shares of Kroger Corporation. For Federal tax purposes, Tad is not allowed to disclaim some of these shares and accept the others. 29. A transfer in trust in which the trustee has the power to accumulate income is a gift of a future interest even if the trustee never exercises the power. 30. In a § 2503(c) trust for minors, the trustee can be given the power to accumulate income without the gift violating the future interest rule. True False 31. In 2009, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $65,000 ($13,000 ´ 5 years). 32. 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.

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