Final Exam > Results Page
You have not taken the final exam yet. No results are available.
final exam score:
final exam status:
100%Question 1
Correct
All of the following are tax benefits of gifting except:
(You Answered) (Correct Answer) Transfers made in 2013 are subject to lower tax rates if made by gift than if made by inheritance.
Future appreciation is removed from the donor's estate.
Funds used to pay gift taxes are removed from the donor's estate.
The value of the gifted property is removed from the donor's estate.
Question 2
Correct
All of the following are true statements about the annual gift tax exclusion except:
There is no limit on the number of donees for which it can be used each year.
The exclusion is figured on a calendar year basis.
(You Answered) (Correct Answer) The annul exclusion applies only to gifts to relatives.
Any unused annual exclusion each year cannot be carried forward.
Question 3
Correct
In 2013, a donor makes a contribution to his son’s Section 529 education savings plan, and makes the “5-year election” to treat the gift as having been made ratably over 5 years. How much can the donor contribute to the plan without making a taxable gift?
$14,000
$65,000
(You Answered) (Correct Answer) $70,000
$84,000
Question 4
Correct
Which of the following statements about the gift tax exemption amount is true?
(You Answered) (Correct Answer) The amount of gift tax exemption used during a person’s lifetime reduces the estate tax exemption amount which is available at the person’s death.
The exemption amount is $3.5 million in 2012.
The exemption amount is $5 million in 2012.
The exemption amount was $5. million in 2013
Question 5
Correct
With respect to the exclusion for direct payments of medical or educational expenses, all of the following statements are true except:
(You Answered) (Correct Answer) A donor can claim either the annual gift tax exclusion or the medical/educational exclusion for the benefit of the same donee.
There is no dollar limit on the medical/educational exclusion.
'Educational expenses' includes only tuition costs and not room and board.
Education expenses can include tuition paid for primary and secondary education as well as post-secondary education.
Question 6
Correct
With respect to the gift tax marital deduction, all of the following statements are true except:
Gifts to non-U.S. citizen spouses are limited in 2012 to present interest gifts up to $139,000.
(You Answered) (Correct Answer) Gifts to U.S. citizen spouses are limited to the lifetime exemption amount.
Gifts to a spouse do not have to be reported on a gift tax return unless they are gifts of terminable interest property, gifts of future interests where someone else is given the present interest, or gifts to a non-U.S. citizen spouse.
Gifts of “Qualified Terminable Interest Property” (QTIP) to a U.S. citizen spouse donee make available unlimited marital deduction to a donor.
Question 7
Correct
With respect to the gift tax charitable deduction, all of the following statements are true except:
(You Answered) (Correct Answer) The extent of the deduction depends on the donor's adjusted gross income.
Gifts to foreign charities may qualify for the deduction.
Gifts that are fully tax free are not reported on the gift tax return unless the donor has also made reportable gifts to a non-charitable beneficiary.
There is an unlimited deduction for gifts to charity.
Question 8
Correct
In 2013, the top gift and estate tax rate is:
15%
35%
(You Answered) (Correct Answer) 40%
55%
Question 9
Correct
With respect to examining gift tax returns, all of the following statements are true except:
The IRS has three years in which to examine a gift tax return and challenge valuations claimed on the return.
After three years have passed, valuation claimed on a gift tax return cannot be challenged if there is adequate disclosure on the return.
The ban on revisiting valuations on closed gift tax returns applies only to gifts made after August 5, 1997 that were properly reported on a gift tax return.
(You Answered) (Correct Answer) The IRS has two years in which to examine a gift tax return and challenge valuations claimed on the return.
Question 10
Correct
Under the American Taxpayer Relief Act of 2012, the estate tax and Generation-Skipping Transfer (GST) tax exclusion amount for 2013 and future years (absent future law changes) is;
$750,000
$1,000,000
$3,500.000
(You Answered) (Correct Answer) $5,000.000 (adjusted for inflation)