Why might real estate be omitted from an inventory of estate property? Multiple Choice Real estate is subject to a separate inheritance tax. State laws require a separate listing of all real estate. In some states, depending on the ownership, real estate is considered to be conveyed directly to a beneficiary at the time of death.

All the following are exampies of non-taxable income, except Select one O a. Proceeds received as beneficiary of a life insurance contract due to the death of the insured O b. income from illegal activities OC Shares of stock received as an inheritance O d. Cash received as a gift Oe All of these are non-taxable

D3) discussion defining a skip person and to which type of transfers does the GSTT apply?, Define taxable distribution. When must the allocation of the GST exemption take place?, Explain the predeceased ancestor exception, What are the benefits of using a generation-skipping trust? Who pays the income tax on the income generated within a dynasty trust and why should a dynasty trust give some beneficiaries a limited power of appointment?

In order to be eligible to exclude gain on the sale of a principal residence, the taxpayer must meet which of the following tests? ○ Ownership test ○ Use test and ownership test Business use test ○ Use test

The following three statements concern the tax treatment of the interest accrued at the date of death on U.S. Savings Bonds owned by the deceased. Of the three statements, which is (are) correct? 1) Any income taxes paid on the deceased's final return are deductible on the estate tax return assuming an estate tax existed at the time of death. 2) The executor is required to include any such accrued interest on the deceased's final income tax return. 3) Such interest may be treated as "income in respect of a decedent." A Doe lue of justed bts, fu ock of eeting ore of ceden

In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III     B) II and IV     C) I and IV     D) II, III, and IV

Of the following statements regarding the estate tax, which is true? O A decedent's taxable estate is never greater than the probate estate. 4 O The taxable estate is reduced by deductions for decedent liabilities, funeral costs, and administrative costs of settling the estate. O The estate tax is not reduced by transfers to the decedent's spouse. O The estate tax exclusion is not reduced by any lifetime gift tax exclusion used by the decedent.

A taxpayer who sells his or her principal residence at a realized loss can elect to recognize the loss even if a qualified residence is not acquired during the statutory time period True False

Which of the following statements is true? Oa. A one-time election is available to taxpayers 55 years of age or older which allows them to sell their personal residences and to exclude all of the realized gain. Ob. A taxpayer's personal residence qualifies for a like-kind exchange. Oc. A taxpayer who sells a personal residence may always exclude the realized gain from taxable income. Od. None of these choices are true. Oe. All of these choices are true.

One of the following statements is correct. Which is it?  In the preparation of the donor’s tax return: Dowries are shown as deductions from the gross gifts. Dowries are not shown any more as gross gifts and as deductions. Spouses making donations of conjugal community property prepare one donor’s tax return. Donor’s tax on donations to strangers and to non-strangers are computed and shown in separate returns.