American College HS330 Actual Free Exam Questions & Community Discussion
A man died in February of this year. Last year, when he learned that he had terminal illness, he immediately made the following gifts and filed the required gift tax return:
Fair Market Value Gift of listed stock to a
*qualified charity $200,000
*Gift of listed bonds to his wife 300,000
*Gift of a boat to his son 10,000
*Gift of a sports car to his daughter 10,000
What amount must be brought back to the man's estate as an adjusted taxable gift in the calculation of his federal estate taxes?
Fair Market Value Gift of listed stock to a
*qualified charity $200,000
*Gift of listed bonds to his wife 300,000
*Gift of a boat to his son 10,000
*Gift of a sports car to his daughter 10,000
What amount must be brought back to the man's estate as an adjusted taxable gift in the calculation of his federal estate taxes?
Correct Answer: A
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All the following are conditions that must be met if an otherwise nonqualified terminable interest is to qualify (as QTIP) for the federal estate tax marital deduction EXCEPT:
Correct Answer: C
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A married man died this year leaving a gross estate of $2,700,000. Some additional facts concerning his estate are:
*Administration expenses and debts $300,000
*Marital deduction 800,000
*Applicable credit amount (2005) 555,800
*Applicable exclusion amount (2005) 1,500,000
*State death taxes payable 17,700
Under the Unified Rate Schedule for computing estate taxes if the amount with respect to which the tentative tax to be computed is over $1,000,000 but not over $1,250,000, the tentative tax is $345,800, plus 41 percent of the excess of such amount over $1,000,000. If the amount is over $1,250,000 but not over $1,500,000, the tentative tax is then $448,300, plus 43 percent of the excess of such amount over $1,250,000. If the amount is over $1,500,000 but not over $2,000,000 the tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000. Based on these facts, the net federal tax payable is
*Administration expenses and debts $300,000
*Marital deduction 800,000
*Applicable credit amount (2005) 555,800
*Applicable exclusion amount (2005) 1,500,000
*State death taxes payable 17,700
Under the Unified Rate Schedule for computing estate taxes if the amount with respect to which the tentative tax to be computed is over $1,000,000 but not over $1,250,000, the tentative tax is $345,800, plus 41 percent of the excess of such amount over $1,000,000. If the amount is over $1,250,000 but not over $1,500,000, the tentative tax is then $448,300, plus 43 percent of the excess of such amount over $1,250,000. If the amount is over $1,500,000 but not over $2,000,000 the tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000. Based on these facts, the net federal tax payable is
Correct Answer: C
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Mr. Barlow died early this year. Under the terms of his will he left all his real estate and tangible personal property to his son. All the remainder of his probate estate was left to his wife, Mrs. Barlow. The following is a list of Mr. Barlow's probate assets and their fair market values at the time of his death:
*Commercial real estate $150,000
*Furniture and fixtures 75,000
*Listed common stock 300,000
*Other securities 200,000
In addition, Mr. Barlow also owned a $100,000 life insurance policy on his life with Mrs. Barlow designated as beneficiary. Based on this information, what is the amount of property in Mr. Barlow's estate qualifying for the federal estate tax marital deduction?
*Commercial real estate $150,000
*Furniture and fixtures 75,000
*Listed common stock 300,000
*Other securities 200,000
In addition, Mr. Barlow also owned a $100,000 life insurance policy on his life with Mrs. Barlow designated as beneficiary. Based on this information, what is the amount of property in Mr. Barlow's estate qualifying for the federal estate tax marital deduction?
Correct Answer: A
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Which of the following statements concerning charitable guaranteed annuity interests is (are) correct?
1.To qualify for an estate tax charitable deduction, guaranteed annuity interests must be made in trust.
2.These interests refer to the charity right to receive a determinable income amount at least annually for a specific term or life (lives) or one or more noncharitable beneficiaries.
1.To qualify for an estate tax charitable deduction, guaranteed annuity interests must be made in trust.
2.These interests refer to the charity right to receive a determinable income amount at least annually for a specific term or life (lives) or one or more noncharitable beneficiaries.
Correct Answer: C
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An individual who is a resident of State W is also the sole proprietor of a business located in State
W. He owns real property located in State X that is used by the proprietorship. While on vacation in State Y, the individual meets an untimely death. Under the terms of his will, his entire estate is bequeathed to a resident of State Z.
Which state will tax the real property used by the proprietorship?
W. He owns real property located in State X that is used by the proprietorship. While on vacation in State Y, the individual meets an untimely death. Under the terms of his will, his entire estate is bequeathed to a resident of State Z.
Which state will tax the real property used by the proprietorship?
Correct Answer: C
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A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. Which of the following statements concerning this action is (are) correct?
1.If the husband dies first, it would be easier to qualify his estate for a Section 303 redemption of his business interest.
2.If the husband dies first, the probate costs of his estate could be increased.
1.If the husband dies first, it would be easier to qualify his estate for a Section 303 redemption of his business interest.
2.If the husband dies first, the probate costs of his estate could be increased.
Correct Answer: C
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Which of the following statements concerning pooled-income funds is (are) correct?
1.The fund contains commingled donations from many sources.
2.A decedent donation purchases units in the fund which generate income that is paid at least annually to a charity.
1.The fund contains commingled donations from many sources.
2.A decedent donation purchases units in the fund which generate income that is paid at least annually to a charity.
Correct Answer: B
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Which of the following statements concerning a power of appointment is correct?
Correct Answer: C
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Which of the following terms applies to the blending together of separate and community properties of spouses in community-property states?
Correct Answer: B
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