Which is FALSE in partial disposition of estate? O The taxpayer is required to execute an undertaking that the proceeds shall be exclusively used for the payment of estate tax O In case of failure to pay, total estate tax due shall be immediately due and demandable without penalties if taxpayer has justifiable reason O The estate is still required to file the estate tax return within the prescriptive period O The BIR may allow the sale of a portion of property without payment of estate tax provided the proceeds shall be used for the payment of estate tax

Which is FALSE in partial disposition of estate? O The taxpayer is required to execute an undertaking that the proceeds shall be exclusively used for the payment of estate tax O In case of failure to pay, total estate tax due shall be immediately due and demandable without penalties if taxpayer has justifiable reason O The estate is still required to file the estate tax return within the prescriptive period O The BIR may allow the sale of a portion of property without payment of estate tax provided the proceeds shall be used for the payment of estate tax

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The general rule is that someone who inherits property has a tax basis in that property equal to its FMV on the date of the decedent’s death. But there are two exceptions to this rule. Explain both of them briefly.
Tim would like to postpone the gain he received on some condemned property. Under the involuntary conversion rules, Tim can postpone the gain if he purchases replacement property Within the same general geographical area Within a particular time period Before the end of the tax year Identical to the property condemned
None
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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
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Which of the following statements is false? When calculating depreciation expense in the year that half-year convention property is sold, the taxpayer is allowed a half year of depreciation expense for the year in which the property is sold When calculating depreciation expense in the year that half-year convention property is sold, the taxpayer is allowed a half quarter of depreciation expense for the quarter in which the property is sold When calculating depreciation expense in the year that realty is sold, the taxpayer is allowed a half month of depreciation expense for the month in which the property is sold When calculating depreciation expense in the year that mid-quarter convention property is sold, the taxpayer is allowed a half quarter of depreciation expense for the quarter in which the property is sold