None of the above d.
697 Testbank © 2010 CCH. All Rights Reserved. Chapter 17 John Marigold’s estate incurred the following payments during administration: 45. (1.) Charitable contributions of $15,000 (2.) Funeral expenses of $4,000 (3.) Mortgage payments of $5,000 (4.) Attorney’s fees of $10,000 Which of the above amounts offer the executor an option to deduct the payments? (1), (2), (3), and (4) a. (1) and (2) b. (1) and (3) c. (4) d. In many cases, a gift tax return is due even if no gift tax is payable. This is true in the following situations, 46. except: A gift of $12,001 to an organization not qualifying for the gift tax charitable contribution deduction. a. A gift of a future interest to donor’s spouse, actuarially valued at $2 million. b. A split gift of $18,000 by parents to their child. c. A gift of a future interest worth $13 to a nephew. d. Which of the following transactions constitute gifts for tax purposes? 47. A payment of $22,000 to cover the expenses of a 22-year-old daughter’s wedding. a. A gift of $100,000 to a political organization. b. A gratuitous transfer to a revocable trust of $1 million, with a life estate to the grantor’s sister, with c. remainder to a grandchild. A year-end bonus of $15,000 to the vice-president of fi nance from the majority shareholder. d. The following statements about the gift tax are correct, except: 48. No donative intent is necessary to fi nd a taxable gift. a. It is dif fi cult to fi nd gifts in an employment situation. b. A gift tax return is due if all gifts made during the year are to quali fi ed charities. c. A gift may result from the lapse of a general power of appointment. d. During the current year, Joseph Horton made the following gifts: 49. $15,000 to the local church $13,000 to his son, Sam $2,000 to Scrags Community College for Sam’s tuition The gift tax return would show the following: Gross gifts of $30,000 less one $13,000 exclusion and a charitable deduction of $15,000. a. Nothing, since none is due. b. Gross gifts of $25,000, less two $13,000 exclusions, and a $5,000 charitable deduction. c. A gross gift of $15,000, less a $13,000 exclusion and a $5,000 charitable deduction, for a net gift of zero. d. The following statements about the $13,000 gift tax exclusion are true, except: 50. A donor may receive two exclusions if the donor’s spouse consents to gift-splitting. a. It is not available for gifts of future interest. b. More than one exclusion may be available to one donor in one year on the transfer of one asset to a c. trust. The marital deduction is available without regard to whether an exclusion is available. d. The following are all true statements about gift-splitting, except: 51. Both spouses must be U.S. citizens or residents at the time of the gift, not necessarily the whole year. a. The election, once made, may only be revoked up to the due date of the gift tax return. b. If the gifted property is owned by the spouses as tenants by the entirety, a gift-splitting election is c.
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- Fall '12
- Taxes, Taxation in the United States