Which of the following transfers is subject to estate tax? a. Transfer passing under general power of appointment b. Merger of usufruct to the owner of naked title c. Transfer of property from fiduciary heir to fideicommissary heir d. Irrevocable donation inter vivos

Which of the following transfers is subject to estate tax? a. Transfer passing under general power of appointment b. Merger of usufruct to the owner of naked title c. Transfer of property from fiduciary heir to fideicommissary heir d. Irrevocable donation inter vivos

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter19: Family Tax Planning

Section: Chapter Questions

Problem 12DQ

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Which is subject to donor's tax?* Merger of usufruct in the owner of the naked title. Delivery of property by the trustee to the beneficiary Cancellation of indebtedness of a debtor out of gratuity support payment to children
What guidelines must be followed to classify a transaction as associated with the principal of an estate or as an income transaction? Select one: a.The decedent's intentions or state laws b.Generally accepted accounting principles c.The Internal Revenue Code d.State estate laws e.Federal estate laws
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The following are transactions and acquisitions exempt from transfer tax, except Transmission from the first heir or donee in favor of another beneficiary in accordance with the desires of the predecessor Transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the fideicommissary The merger of the usufruct in the owner of the naked title All bequests, devises, legacies or transfers to social welfare, cultural and charitable institutions
What type of accrual method (cash, modified, full, governmental, GASB accrual) is to be used to report transaction in Private Purpose Trusts? Answer:
Under what circumstances does an estate have an executor? Select one: a.When the estate exceeds the dollar amount of the estate tax exemption. b.When the will establishes a trust fund. c.When there is no valid will. d.When the will is contested. e.When the will names a specific person to administer the estate.
Which of the following are nontax characteristics of a qualified terminable interest property (QTIP) trust? The income may go to multiple beneficiaries. The donor or decedent's executor qualifies the trust assets for the marital deduction by making a timely election The principal of the trust is paid to the surviving spouse's estate if the election to qualify the assets for the marital deduction was not made upon creation of the trust. The grantor of the trust determines who receives the remainder interest in the trust assets. A)II, III, and IV B)I and III C)IV only D)II and IV
Can you explain the choices an executor of an estate has in determining the values of assets included in the estate for tax purposes.
When is income recognized for a cash method taxpayer vs. an accrual taxpayer? Explain the hybrid method.
Tax Drill - Property Received by Gift Indicate whether the following statements are "True" or "False" regarding the tax treatment when a taxpayer receives property as a gift. a. If gift taxes are paid by the donor, the portion of the gift tax paid that is related to any appreciation is taken into account in determining the donee's gain basis. b. The holding period for property acquired by gift begins on the date the donor acquired the property if the loss basis rule applies. c. The basis for depreciation on depreciable gift property is the donee's gain basis.
Complete the following chart, indicating the comparative attributes of the typical trust and estate by answering yes/no or explaining the differences between the entities where appropriate.
Which of the following items is not charged against the income of an estate? a. Ordinary repairs to income-producing property b. Expenses incurred to protect income flow c. Loss on the sale of an estate asset d. All of the above are charged against the income