Which of the following statements relating to qualified transfers for gift tax purposes is not correct? O The relationship between the donor and the donee is irrelevant with a qualified transfer. O A payment made directly to an individual to reimburse him for medical expenses is a qualified transfer. The exclusion for a qualified transfer is in addition to the annual exclusion. O A payment made to a qualified education institution for tuition costs is a qualified transfer.

Which of the following statements relating to qualified transfers for gift tax purposes is not correct? O The relationship between the donor and the donee is irrelevant with a qualified transfer. O A payment made directly to an individual to reimburse him for medical expenses is a qualified transfer. The exclusion for a qualified transfer is in addition to the annual exclusion. O A payment made to a qualified education institution for tuition costs is a qualified transfer.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter18: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 2BCRQ

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Which of the following statements relating to qualified transfers for gift tax purposes is not correct? 1. The relationship between the donor and the donee is irrelevant with a qualified transfer. 2. A payment made directly to an individual to reimburse him for medical expenses is a qualified transfer. 3. The exclusion for a qualified transfer is in addition to the annual exclusion. 4. A payment made to a qualified education institution for tuition costs is a qualified transfer. The relationship between the donor and the donee is irrelevant with a qualified transfer. A payment made directly to an individual to reimburse him for medical expenses is a qualified transfer. The exclusion for a qualified transfer is in addition to the annual exclusion. A payment made to a qualified education institution for tuition costs is a qualified transfer.
Which of the following statements regarding a Qualified Tuition Program (Section 529 plan) is true? a.Contributions to the plan are deductible for AGI. b. Distributions from a Qualified Tuition Program are not allowed for room and board expenses. c. Earnings on the plan assets are not taxable if the money distributed from the plan is used for qualified education expenses. d. A resident of California may not contribute to a Qualified Tuition Program in another state.
If an individual renders services for a creditor who in consideration thereof cancels his existing debt, the cancellation of indebtedness may amount to a Gift Donation intervivos Payment of income Capital contribution
Which of the following is a CORRECT statement concerning whether a transfer is a gift for federal gift tax purposes? A)The gift tax does not apply to a situation where a donee disclaims her right in the property in favor of someone else that she names. B)The gift tax applies only when a donor intentionally and voluntarily transfers property to another and does not receive equal value for what was given. C)In most states, there is no immediate gift tax consequence of adding a child’s name to a parent’s existing bank accounts so that the child can assist in paying the parent’s bills. D)The gift tax does not apply to the forgiveness of one or two loan payments if the loan is from a parent(s) to an adult child to use for education or for the down payment on a house, the loan is evidenced by a promissory note, and there is a reasonable expectation that the child will make the remaining payments.
The constructive receipt doctrine requires that income be recognized when it is made available to the cash basis taxpayer even though there are restrictions on actually receiving it. The constructive receipt doctrine does not apply to accrual basis taxpayers. True False
Which of the following is NOT true about an RESP? Select one: a. Withdrawals are taxed in the hands of the beneficiary b. There is a lifetime contribution limit per beneficiary c. The federal government subsidizes the parents' deposits with a grant d. Deposits are not deductible, beneficiary's withdrawals are not taxable
With respect to spousal and child support, which of the following statements is NOT correct. A) Any amounts that are not specifically identified in the agreement as spousal support will be considered child support. B) An amount qualifies as a support payment only if it is payable or receivable on a periodic basis. C) The recipient of child support payments will include this amount in income. D) Deductible support payments reduce the taxpayer's Earned Income for RRSP purposes.
Which, if any, of the following items is subject to indexation (adjusted to reflect inflation)? O a. The election to split gifts under § 2513. O b. Annual gift tax exclusion. O c. The limitation placed on the amount allowed as a charitable contribution for estate tax purposes (§ 2055). O d. Unified transfer tax rates.
One of the following statements is correct. A choice of by an individual of the Optional Standard Deduction means that: His/Her income tax return need not be accompanied by financial statements. S/he need not need keep books of accounts S/he need not have records of gross income His/Her choice can still be changed by filing an amended return.
On a contribution to the Roman Catholic Church by an individual, which of the following correctly state/s the rules/s in computing the donor’s tax? There is no deduction from the gross gift. It is not considered a gift on which there will be a donor’s tax. It is considered a gross gift and a deduction from the gross gift. It pays the donor’s tax at the time of the contribution at the graduated rates of donor’s tax.
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.
Which of the following is correct? The gain basis for property received by gift is the lesser of the donor’s adjusted basis or the fair market value on the date of the gift. The loss basis for property received by gift is the same as the donor’s basis. The gain basis for inherited property is the same as the decedent’s basis. The loss basis for inherited property is the lesser of the decedent’s basis or the fair market value on the date of the decedent’s death. None of the above.