Which of the following is not an advantage of lifetime gifts a The annual

Which of the following is not an advantage of

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25.Which of the following is not an advantage of lifetime gifts? a. The annual exclusion can shield thousands of dollars from taxation.b. Property appreciation does not enter the estate tax calculation.c. A stepped-up basis is secured for appreciated gifts.d. Gift-splitting allows spouses to combine their annual exclusions 26. Morrow died on January 15, 2013 leaving the following assets:AssetsDate of DeathFair Market ValueAlternate ValuationDate ValueHome$600,000$610,000Stocks$300,000$270,000Bonds$400,000$402,000Rolls Royce$75,000$78,000What is the value of the estate if the alternative valuation date is elected and the house was sold on March 10 for $605,000 and the stocks were sold on June 30 for $265,000? 27.Both gross annual gifts and the gross estate are reduced for 28. The following gifts could be subject to the generation skipping transfer tax except: 29.Which of the following would not be income in respect of a decedent who dies on January 4? a. Interest credited a savings account on January 2 but not withdrawn.b. A dividend declared on December 31 payable on January 15.c. Salary payable on January 10.d. $30,000 in the decedent’s 401-K plan.30.Appreciated property that was inherited in 2013 31. Carey is trustee of the Floyd Family Trust. The trust distributes $20,000 income to George, $10,000 to Linda, and $5,000 to George and Linda’s church. The Floyd Family trust is:
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12 Taxation for Decision Makers Test Bank 32.William set up a trust for his parents. Each parent is to receive one-half of the income for his or her lifetime; when one parent dies, all income is to go to the surviving parent. When the other parent dies,the remainder is to go to William. This trust is: 33. Distributable net income a. limits the amount of a distribution that is taxable to the beneficiary.b. is only made up of taxable income.c. is the minimum amount that must be distributed by a complex trust.d. is the dividend and interest earned by a trust in a year less expenses.
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