Question 1

Identify which of the following statements is true.

Accepted Answer

A)  The trustee of a Sec.2503(c) trust must distribute all of the corpus and accumulated income when the beneficiary reaches the age of 25.
B)  The gift tax exclusion is available for a gift of a present or future interest.
C)  A "Crummey demand power" in a trust document allows the donor to demand a distribution from the trust in years in which assets are transferred to the trust.
D)  All of the above are true.E) A) and B)
F) All of the above

Question 2

Jennifer and Terry,a married couple,live in Illinois; which is a common law state.In the current year,Terry gives his sister $200,000 cash.Jennifer and Terry agree to gift splitting.Neither Jennifer nor Terry has made any taxable gifts in prior years.What are Jennifer and Terry's taxable gifts?

Accepted Answer

Since they elect gift splitting,each spo...

Question 3

What is the due date for the gift tax return? Are there any exceptions? If so,what are they?

Accepted Answer

Gifts always are reportable on a calenda...

Question 4

Mike transfers securities to an irrevocable trust and gives Rachel the power to determine who will receive the trust's income and assets.Rachel,her estate,and her creditors cannot be beneficiaries or receive the trust assets.Rachel has a general power of appointment.

Accepted Answer

A) True 
 B)False

Question 5

Barbara sells a house with an FMV of $170,000 to her daughter for $120,000.From this transaction,Barbara is deemed to have made a gift (before the annual exclusion) of

Accepted Answer

A)  $50,000.
B)  $170,000.
C)  $120,000.
D)  $0.E) None of the above
F) B) and C)

Exam 23: The Gift Tax

Jennifer and Terry,a married couple,live in Illinois; which is a common law state.In the current year,Terry gives his sister $200,000 cash.Jennifer and Terry agree to gift splitting.Neither Jennifer nor Terry has made any taxable gifts in prior years.What are Jennifer and Terry's taxable gifts?

Correct Answer
verified
Since they elect gift splitting,each spo...
View Answer

What is the due date for the gift tax return? Are there any exceptions? If so,what are they?

Correct Answer
verified
Gifts always are reportable on a calenda...
View Answer

Identify which of the following statements is true.

Correct Answer
verified

Mike transfers securities to an irrevocable trust and gives Rachel the power to determine who will receive the trust's income and assets.Rachel,her estate,and her creditors cannot be beneficiaries or receive the trust assets.Rachel has a general power of appointment.

Correct Answer
verified

Barbara sells a house with an FMV of $170,000 to her daughter for $120,000.From this transaction,Barbara is deemed to have made a gift (before the annual exclusion) of

Correct Answer
verified

Exam 23: The Gift Tax

Jennifer and Terry,a married couple,live in Illinois; which is a common law state.In the current year,Terry gives his sister $200,000 cash.Jennifer and Terry agree to gift splitting.Neither Jennifer nor Terry has made any taxable gifts in prior years.What are Jennifer and Terry's taxable gifts?

Correct AnswerverifiedSince they elect gift splitting,each spo...View AnswerShow Answer

What is the due date for the gift tax return? Are there any exceptions? If so,what are they?

Correct AnswerverifiedGifts always are reportable on a calenda...View AnswerShow Answer

Identify which of the following statements is true.

Correct AnswerverifiedShow Answer

Mike transfers securities to an irrevocable trust and gives Rachel the power to determine who will receive the trust's income and assets.Rachel,her estate,and her creditors cannot be beneficiaries or receive the trust assets.Rachel has a general power of appointment.

Correct AnswerverifiedShow Answer

Barbara sells a house with an FMV of $170,000 to her daughter for $120,000.From this transaction,Barbara is deemed to have made a gift (before the annual exclusion) of

Correct AnswerverifiedShow Answer

Correct Answer
verified
Since they elect gift splitting,each spo...
View Answer

Correct Answer
verified
Gifts always are reportable on a calenda...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified