These statements are presented to you for evaluation:
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26
Statement I – The transfer of property is perfected by delivery, either actually or constructively, of the donated property to the donee.
Statement II – The transfer of property by gift is completed from the moment the donor knows of the acceptance of the donee.
In your evaluation of the foregoing statements:
Step by step
Solved in 3 steps
- How does a devise differ from a legacy? Choose the correct.a. A devise is a gift of money and a legacy is a nonmonetary gift.b. A devise is a gift to an individual and a legacy is a gift to a charity or other organization. c. A devise is a gift of real property and a legacy is a gift of personal property.d. A devise is a gift made prior to death and a legacy is a gift made at death.a. What is the difference between distributing property per capita and per stirpes? When would a per stirpes distribution be required? what are two ways in which the duties of an administrator differ from those of an executor? Must the grantor, trustee, and beneficiary of a trust all be different people? What formalities must be followed to create a testamentary trust?Section 1015 – basis of property received as a gift is the basis of the property in the hands of the donee is the same as the basis in the property in the hands of the donor. There is a deferral of the gain in with the appreciation attributable to the time it is in the hands of the donor. T receives a gift from an uncle’s detached and disinterested generosity. T’s uncle has a basis in the property of $70,000 and the FMV of the property at the time of the gift is $100,000. T sells the property for $100,000. What is the gain? Same T and same uncle, same motivation, but the uncle’s basis is $120,000 and the FMV at the time is $100,000. T sells the property for $130,000. What is the gain? Same T and same uncle, same motivation, but the sale price is $90,000. Same T and same uncle, same motivation, but the sales price is $115,000. . Same T and same uncle, same motivation, but the sales price is $100,000. Same T and same uncle, same motivation, but the sales price is $120,000
- Pick correct one Which of the following statements is true? A. Realized gain and recognized gain are the same and can be used interchangeably. B. When boot is given in a like-kind exchange, recognized gain is the greater of the boot or the realized gain. C. To qualify as a like-kind exchange, real property must be exchanged either for other real property or for personal property. D. If boot is received in a like-kind exchange, the recognized gain cannot exceed the realized gain. E. Kate exchanges land held as an investment for a investment building owned by Clark. This exchange is not qualified as like-kind exchange because they exchange developed real property with non-developed real property.The following are elements of donation, which one is not ? Capacity of the donee to make the donation Capacity of the donor to make the donation The donative intent or intent to make a gift on the part of the donor The delivery and acceptance of the donation1. The special use valuation method of § 2032A is available for valuing transfers by gift. a. True b.False 2. One way to dispute the existence of large goodwill is to argue that the decedent was not a key person in the operation of the business. a. True b.False 3. Under proper circumstances, a disclaimer by an heir can increase the charitable deduction allowed a decedent. a. True b.False 4. A typical state taxable income subtraction modification is the interest income earned from another state's bonds. a. True b.False
- What is the objective of the process of abatement? Choose the correct.a. To give legal structure to the reductions that must be made if an estate has insufficient assets to satisfy all legacies.b. To ensure that all property distributions take place in a timely manner.c. To provide adequate compensation for the estate executor and any appraisers or other experts that must be hired.d. To ensure that all legacies are distributed to the appropriate party as specified by the decedent’s will or state laws.What is the difference between a testamentary trust and an inter vivos trust? Choose the correct.a. A testamentary trust conveys money to a charity; an inter vivos trust conveys money to individuals.b. A testamentary trust is created by a will; an inter vivos trust is created by a living individual. c. A testamentary trust conveys income to one party and the principal to another; an inter vivos trust conveys all monies to the same party. d. A testamentary trust ceases after a specified period of time; an inter vivos trust is assumed to be permanent.Assets received in donation should Group of answer choices be depreciated based on the their book value at the time of the donation. be expensed upon receipt. be depreciated based on their fair value at the time of the donation. should not be depreciated.
- What are the three categories of contributions based on donor intent? pease answer in detailProperty acquired through donation is recorded at a. It's book value b. It's fair market value c. It's cost d. ZeroWhat is the difference between a testamentary trust and an inter vivos trust? Multiple Choice A testamentary trust is created by a will; an inter vivos trust is created by a living individual. A testamentary trust conveys money to a charity; an inter vivos trust conveys money to individuals. A testamentary trust ceases after a specified period of time; an inter vivos trust is assumed to be permanent. A testamentary trust conveys income to one party and the principal to another, an inter vivos trust conveys all monies to the same party.