Gifting - Sample Questions 6 - 9
6. Which of the following would be considered a taxable gift that requires a Form 709 filing if made by Tom and Lily Jones, a married couple:
I. Gift of $30,000 in XYZ stock to their grandson
II. Gift of $12,000 to their church
III. Tom gifts $120,000 to Lily
IV. Split gift of $20,000 to their child Monica
A) I and III only
B) I and IV only
C) II and III only
D) I, II and IV only 7. All of the following are acceptable transfers not subject to the gift tax EXCEPT:
A) Jim pays $50,000 directly to a university for his son's tuition payment
B) Patty pays $18,000 to the local hospital to cover her neighbor's surgery bill
C) Jeb pays $60,000 to the Republican Party political organization
D) Chris pays $20,000 directly to the IRS to get his daughter out of tax trouble for not filing her last three tax returns
8. Which of the following is considered a transfer to a skip person under the GSTT rules:
A) Transfer of funds to a CRAT with wife as income beneficiary
B) Transfer of funds to a CRUT with grandson as income beneficiary
C) Transfer of funds to an irrevocable trust with grandson as beneficiary
D) Transfer of funds to a pooled income fund
9. All of the following are TRUE statements concerning gift, estate and GSTT EXCEPT:
A) The highest gift tax rate in year 2013 is 40%
B) The lifetime gift and estate tax exemption amount is $3,500,000 (tax year 2013)
C) Gifts to a spouse are not considered a taxable gift
D) The unified credit amount for 2013 is $2,045,800
The lifetime gift and estate exemption amount is $5,250,000 for tax year 2013.Answer Key
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