CFP

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


Answer: B

The lifetime gift and estate exemption amount is $5,250,000 for tax year 2013.




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