2) Ina’s tax return shows a taxable estate of $26,073,991 after claiming the pro
ID: 2437115 • Letter: 2
Question
2) Ina’s tax return shows a taxable estate of $26,073,991 after claiming the proper deductions. The estate tax liability, before the unified credit, amounts to:
a: $10,429,596
b: $10,375,396
c: $8,249,496
d: some other amount (your answer:_________________)
3) In the current year, Cesar, who is single, gives $26,000 to each of his 20 nieces and nephews for a total property transfer of $520,000. Cesar's taxable gifts total
a: $520,000.
b: $260,000.
c: $300,000.
d: $220,000.
8) Jennifer and Terry, a married couple, live in New York; which is not 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. How much do Jennifer and Terry's report as taxable gifts?
a: $85,000
b: $100,000
c: $200,000
d: $186,000
10) In the current year, Bonnie, who is single, sells stock valued at $60,000 to Linda for $15,000. Later that year, Bonnie gives Linda $25,000 in cash. Bonnie's taxable gifts from these transfers total
a: $70,000.
b: $59,000.
c: $56,000.
d: $25,000.
12) Dino and Joey, who are brothers, owned real estate as joint tenants with the right of survivorship. They purchased the land in 1985 for $300,000. Dino contributed $177,000 to the purchase price and Joey put up the remaining $123,000. Dino died on December 25, 2014, when the real estate was worth $3,771,000. How much of the real estate’s value is includable in Dino’s gross estate?
a: $2,224,890
b: $3,771,000
c: $177,000
d: some other amount (your answer:_________________)
16) During the current year, Carla gave taxable gifts amounting to $671,000 (net of the annual exclusion). Her only other taxable gifts were $2,800,473 in 2007, in which she claimed a unified credit of $780,800. Her gift tax liability for the year before her unified credit amounts to:
a: 374,389
b: $1,334,389
c: $0
d: some other amount (your answer:_________________)
18) The following are the fair market value of Richard’s assets at the time of his death:
I) Automobile, jewelry, cash, and personal effects: $150,000
II) Land purchased with Richard’s personal funds
five years prior to his death, owned jointly with Rita, his spouse: $800,000
What is the includable amount in his gross estate?
a: $950,000
b: $475,000
c: $550,000
d: some other amount (your answer:_________________)
4) Molly sells her car, valued at $30,000, to her nephew Todd for $18,000. Molly has made a gift of $30,000.
6) The maximum transfer tax rate is 40% of the taxable base.
8) The due date to file a gift tax return is 9 months from the date of the gift.
12) In 2001, Polly and Fred, brother and sister, purchased a condominium at a golf resort. Polly contributed 60% of the $200,000 cost; Fred contributed 40%. Polly dies in the current year when the condominium has a $3,500,000 value. Polly’s gross estate must include 60% of the value of the condominium, which is $2,100,000.
19) Jethro gave $7,000,000 of taxable gifts this year. He has no prior gifts. He has a gift tax liability of $585,800
Explanation / Answer
Assumption: taxable year 2018
2. Ina’s tax return shows a taxable estate of $26,073,991 after claiming the proper deductions.
Hence gross taxable estate=$](26,073,991-1,000,000)*0.4]+$345,800=$10,375,396.
Hence, the answer is point B.
3. In the current year, Cesar, who is single, gives $26,000 to each of his 20 nieces and nephews for a total property transfer of $520,000.
As per the IRS rules the gift exemption limit is $ 15,000 per receipent.
Hence, the taxable gift= $(26,000-15,000)*20=$220,000.
Hence, the answer is point D.
8. Jennifer and Terry, a married couple,e. 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.
As per the IRS rules the gift exemption limit is $ 15,000 per receipent per doner.
hence the gift person =$200,000/2=$100,000.
Taxabale gift per person=$(100,000-15,000)=$85,000.
The answer is point A.
10. In the current year, Bonnie, who is single, sells stock valued at $60,000 to Linda for $15,000. Later that year, Bonnie gives Linda $25,000 in cash.
Hence the total transfer made by Bonnie to Linda= $(60,000-15,000+25,000)=$70,000.
The taxable gift =$(70,000-15,000) =$55,000.
The answer is not mentioned in the points.
As per the Chegg answeing policy I've answered first 4 questions.
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