Write my essay on 2105. Question TF #2 A lifetime transfer that is supported by full and adequate consideration

Question2104. Question TF #1
Sometimes also known as transaction taxes, Federal gift and estate taxes are excise taxes.
a. Trueb. False
2105. Question TF #2A lifetime transfer that is supported by full and adequate consideration is not a gift.
a. Trueb. False
2106. Question TF #3One of the reasons the estate tax was enacted was to prevent the avoidance of the gift tax by the making of “deathbed gifts.”
a. Trueb. False
2107. Question TF #4At one point, the tax rates applicable to transfers by gift were lower than those applying to transfers by death.
a. Trueb. False
2108. Question TF #5
Some states impose inheritance taxes, but the Federal tax system does not.
a. Trueb. False
2109. Question TF #6An estate tax is a tax on the right of an heir to receive property on the death of the owner.
a. Trueb. False
2110. Question TF #7A few states impose both an estate tax and an inheritance tax.
a. Trueb. False
2111. Question TF #8In some cases, the Federal gift tax can be imposed on someone other than the donor.
a. Trueb. False
2112. Question TF #9José, a citizen and resident of Panama, makes a gift of ExxonMobil stock to his children. Because ExxonMobil is a U.S. corporation, José will be subject to the U.S. Federal gift tax.
a. Trueb. False
2113. Question TF #10Kim, a resident and citizen of Korea, dies during an operation at the Mayo Clinic in Rochester (MN). Because Kim died in the U.S., he will be subject to the Federal estate tax.
a. Trueb. False
2114. Question TF #11Paul, a U.S. citizen, will avoid the Federal estate tax if he becomes a Canadian resident and owns no property located in the U.S. at the time of his death.
a. Trueb. False
2115. Question TF #12Becky made taxable gifts in 1974, 2010, and 2011. In computing the gift tax on the 2011 gift, she must consider all of the prior taxable gifts.
a. Trueb. False
2116. Question TF #13For Federal estate tax purposes, the gross estate may include property the decedent does not own.
a. Trueb. False
2117. Question TF #14For Federal estate tax purposes, the gross estate does not include property that will pass to a surviving spouse.
a. Trueb. False
2118. Question TF #15For both the Federal gift and estate tax, a deduction is allowed for certain transfers to charity.
a. Trueb. False
2119. Question TF #16In the past, the amount of the unified tax credit has been the same for both transfers by gift and transfers by death.
a. Trueb. False
2120. Question TF #17If the value of the gross estate is lower on the alternate valuation date than on the date of death, then the alternate valuation must be used.
a. Trueb. False
2121. Question TF #18For Federal estate and gift tax purposes, the exclusion amount is the same thing as the exemption equivalent.
a. Trueb. False
2122. Question TF #19Under the alternate valuation date election, each asset in the gross estate is valued at the lesser of the date of death value or six months thereafter.
a. Trueb. False
2123. Question TF #20Daniel’s will provides that all of his property passes to a trust, life estate to his wife, remainder to charity. If Daniel’s executor does not make a QTIP election, the use of the alternate valuation date is possible.
a. Trueb. False
2124. Question TF #21The election of the alternate valuation date cannot affect the amount of a charitable deduction allowed to an estate for a bequest to a qualified charity.
a. Trueb. False
2125. Question TF #22The election of the alternate valuation date does not include any income earned by the property after the date the deceased owner died.
a. Trueb. False
2126. Question TF #23A father wants to give a parcel of land to his two children. If he wants the survivor to have sole ownership, he should list ownership of the property as joint tenants.
a. Trueb. False
2127. Question TF #24The death of a tenant in common will defeat his or her interest in the property.
a. Trueb. False
2128. Question TF #25In community property states, all property acquired after marriage by either spouse is community property.
a. Trueb. False
2129. Question TF #26Sandy pays a local college for her non-dependent boyfriend’s tuition. The payment is not subject to the Federal gift tax.
a. Trueb. False
2130. Question TF #27Barry pays State University for his daughter’s room and board. Barry has made a transfer that is subject to the Federal gift tax.
a. Trueb. False
2131. Question TF #28
Transfers to political organizations are not exempt from the application of the Federal gift tax.
a. Trueb. False
2132. Question TF #29Pauline sells antique furniture to her daughter, Nicole, for $10,000. If the furniture is really worth $100,000, Pauline has made a gift to Nicole of $100,000.
a. Trueb. False
2133. Question TF #30Mitch pays the surgeon and the hospital for his aunt’s gall bladder operation. The transfer is not subject to the gift tax.
a. Trueb. False
2134. Question TF #31Sam purchases a U.S. savings bond which he registers as follows: “Sam, payable to Don upon Sam’s death.” A gift occurs when Sam dies.
a. Trueb. False
2135. Question TF #32If interest is provided for in loans between related parties, there is no imputed interest, as a gift loan does not result.
a. Trueb. False
2136. Question TF #33For gift tax purposes, a property settlement in consideration of marriage (i.e., prenuptial agreement) is not treated the same as a property settlement incident to a divorce.
a. Trueb. False
2137. Question TF #34
A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.
a. Trueb. False
2138. Question TF #35Under his grandfather’s will, Tad is entitled to receive shares of Kroger Corporation. For Federal tax purposes, Tad is allowed to disclaim some of these shares and accept the others.
a. Trueb. False
2139. Question TF #36A transfer in trust in which the trustee has the power to accumulate income is not a gift of a future interest if the trustee never exercises the power.
a. Trueb. False
2140. Question TF #37In 2011, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $130,000 ($26,000 ´ 5 years).
a. Trueb. False
2141. Question TF #38Although qualified tuition plans under § 529 are treated favorably for gift tax purposes, such plans are subject to estate tax consequences upon the grantor’s death.
a. Trueb. False
2142. Question TF #39To make the election to split gifts under § 2513, spouses must file a Form 709 (Federal gift tax return).
a. Trueb. False
2143. Question TF #40A husband and wife make a gift of their vacation home to their adult children. If the property is owned jointly by them, the gift-splitting election need not be made.
a. Trueb. False
2144. Question TF #41Under certain circumstances, the gift-splitting election can be made even though the electing spouses are no longer married to each other.
a. Trueb. False
2145. Question TF #42The use of the election to split gifts under § 2513 may be necessary for spouses who live in community property states.
a. Trueb. False
2146. Question TF #43If a donor has a fiscal year of July 1-June 30 for income tax purposes, this changes the normal filing date for Form 709.
a. Trueb. False
2147. Question TF #44A Federal gift tax return may have to be filed even if no gift tax is payable.
a. Trueb. False
2148. Question TF #45Iris dies intestate (i.e., without a will). All of her property passes to her heirs in accordance with the order of distribution prescribed under Federal law.
a. Trueb. False
2149. Question TF #46In most cases, the gross estate of a decedent is larger than the probate estate.
a. Trueb. False
2150. Question TF #47Interest on state and local bonds is subject to neither the Federal income tax nor the Federal estate tax.
a. Trueb. False
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