9. Manuel, a citizen and resident of Argentina, makes a gift to his children of a ranch located in Colorado. Manuel will be subject to the U.S. gift tax.
10. Kim, a resident and citizen of Korea, dies during an operation at the Mayo Clinic in Rochester (MN). Because Kim died in the U.S., he will be subject to the Federal estate tax.
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.
12. Becky made taxable gifts in 1974, 2010, and 2012. In computing the gift tax on the 2012 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.
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.