Acct 6249

Front 1

What is the justification of the alternate valuation date election (2032)?

Back 1

provides estate tax relief in chases where a decline in value of estate assets has occurred in a 6 month period after the decedent's death

Front 2

What form must be filed to clain the alternate valuation date election?

Back 2

Form 706

Front 3

Who decides the 2032 alternate valuation date?

Back 3

the executor. They may consider the heirs requests, but aren't controlled by them

Front 4

alternate valuation date chosen must the the closer of

Back 4

the asset sale date or 6 months after death

Front 5

alternate valuation election applies to

Back 5

ALL assets in a gross estate

Front 6

alternate valuation election must decrease ___ and ___

Back 6

gross estate and estate tax

Front 7

alternate valuation election decides the basis of assets for ___ and ___ tax purposes

Back 7

gross estate and income tax

Front 8

The 2032 election takes into account income accrued to ___, not ___

Back 8

DOD, post-death income

Front 9

what type of ownership arrangement accomplishes a GM wanting her son to receive income for his life and then property to his children?

Back 9

create a trust with a life estate to son, and remainder to children

Front 10

what type of ownership arrangement accomplishes a married couple wanting co-ownership w/right of survivorship?

Back 10

tenancy in entirety

Front 11

what type of ownership arrangement accomplishes a parent wanting co-ownership w/children w/right of survivorship

Back 11

joint tenancy between parent and children

Front 12

what type of ownership arrangement accomplishes a parent wanting co-ownership w/children w/ NO right of survivorship

Back 12

tenancy in common between parent and children

Front 13

roy gives his daughter money for estimated first yr college expenses. Is he subject to gift tax?

Back 13

no, obligation to support child met by educating them

Front 14

when filing federal gift tax return, comment on: no federal gift tax is due

Back 14

would still have to file return if gift exceeds exclusion or involves a future interest

Front 15

when filing federal gift tax return, comment on: gift between spouses

Back 15

no gift tax return due on gifts between spouses that get marital deduction

Front 16

when filing federal gift tax return, comment on: 2513 spousal split election used

Back 16

can only make election by filing return

Front 17

when filing federal gift tax return, comment on: gift of future interest involved

Back 17

must be filed if future interest involved

Front 18

when filing federal gift tax return, comment on: donor uses fiscal year

Back 18

gifts are always reported on calendar year

Front 19

when filing federal gift tax return, comment on: donor got IRS ext for filing 1040

Back 19

this extension also automatically extends the gift tax return

Front 20

what is the estate tax treatment for: surviving spouse's share of community property

Back 20

surviving spouses share of comm prop not part of gross estate, no return due

Front 21

what is the estate tax treatment for: dower interest claimed by surviving spouse of decedent

Back 21

dower interest is NOT excluded from gross estate, but probably qualified for marital deduction

Front 22

what is the estate tax treatment for: div declared but not paid on stock owned

Back 22

dividend included in gross estate if RECORD date is before DOD

Front 23

what is the estate tax treatment for: interest accrued but not pd on city bonds owned by decedent

Back 23

interest accrued up to DOD included in gross estate

Front 24

what is the estate tax treatment for: NR due from relative but forgiven in decedent's will

Back 24

FMV of note included in gross estate

Front 25

what is the estate tax treatment for: Roth IRA payable to decedent's surviving spouse

Back 25

Retirement plan income ALWAYS subject to estate tax, even if not subject to income tax

Front 26

what is the estate tax treatment for: gift of stock before death

Back 26

gross estate = FMV of life insurance proceeds + gift given within 3 years TAX

Front 27

what is the estate tax treatment for: special power of appointment in will

Back 27

no transfer tax

Front 28

What is the annual gift tax exclusion per donee?

Back 28

12k

Front 29

What is a single persons unified transfer tax credit per year?

Back 29

345,800

Front 30

if ron promises his daughter 10k once she passes the cpa exam, and she does after his death, does she get it?

Back 30

no enforeceable claim exists, no

Front 31

Unlike income tax returns, ___ & ___ can be deducted on an estate return

Back 31

fine/penalties, federal AND state taxes

Front 32

stolen properties FMV is ___ in the gross estate, then deducted

Back 32

included

Front 33

Accident insurance recovery is ___ included in gross estate. a casualty loss is claimed on ____

Back 33

IS, FINAL INCOME RETURN ONLY

Front 34

what characteristics do exempt orgs have?

Back 34

1)serves common good 2)not for-profit 3)net earnings do NOT benefit members of org 4)does NOT exert political influence

Front 35

what are the exceptions that make an exempt org pay tax?

Back 35

1)engaged in prohibited transaction 2)feeder org 3)classified as private foundation 4)has UBTI

Front 36

a 501(h) election allows exempt entities like hospitals and medical research facilities to give limited ____

Back 36

political contributions

Front 37

what and who are intermediate sanctions for?

Back 37

excise tax on disqualified persons or managers who do improper transactions. This keeps the IRS from taking away the entity's exempt status.

Front 38

what is the external support test?

Back 38

requires that more than 1/3 of the orgs support each year must normally come from the general public (excluding disqualified persons)., governmental units, or orgs that aren't private. Support must be gifts, grants, contributions, membership fees, gross receipts from admissions, sales or merchandise, performance of services, or furnishing of facilities in an activity that is not an UTB. These gross receipts >5k or 1% of orgs support are not counted.

Front 39

internal support test?

Back 39

limits amount of support normally received from gross investment income, UBTT-related tax to 1/3 od orgs support for tax yr

Front 40

what taxes are a private foundation potentially subject to?

Back 40

investment income tax, self-dealing, failure to distribute income, excess biz holdings, investments that jeopardize charitable purposes, tax on taxable expenditures

Front 41

what circumstances cause an exempt org to be subject to UBIT?

Back 41

1) conducts trade/biz 2)not substantially related to exempt purpose 3) trade/biz regularly carried on by org

Front 42

what is a feeder org?

Back 42

wholly owned corporate subsidiary taxed at regular corp rates

Front 43

what is the intermediate sanction on a CEO for paying too much unreasonable compensation to a manager?

Back 43

MIN(excess comp * 10%, 10k)