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Income earned but unpaid at the time of a decedent’s death is deemed to be income in respect of a decedent (IRD). All the following statements concerning IRD are correct EXCEPT:
Income earned but unpaid at the time of a decedent’s death is deemed to be income in respect of a decedent (IRD). All the following statements concerning IRD are correct EXCEPT:A . The income must be reported on the decedent’s final federal income tax return.B . The income is taxable...
Which state will tax the real property used by the proprietorship?
An individual who is a resident of State W is also the sole proprietor of a business located in State W. He owns real property located in State X that is used by the proprietorship. While on vacation in State Y, the individual meets an untimely death. Under the terms...
Ignoring the annual per-donee exclusion, all the following transfers are gifts for federal gift tax purposes EXCEPT:
Ignoring the annual per-donee exclusion, all the following transfers are gifts for federal gift tax purposes EXCEPT:A . A creditor cancels the promissory note of a friend who recently became unemployed.B . A grandmother reimburses her grandson for his college tuition costs.C . A father lends his daughter a large...
Which of the following conditions will enable the gift to qualify for the annual exclusion?
John plans to transfer his life insurance policy to an irrevocable trust for the benefit of his 19-yearold daughter, Jane. Which of the following conditions will enable the gift to qualify for the annual exclusion? l. Jane is the irrevocable beneficiary of the life insurance trust but cannot withdraw from...
Which of the following statements concerning property is correct?
Which of the following statements concerning property is correct?A . A mortgage on real estate is real property.B . A tree growing on land is tangible personal property.C . Any property that is not real property is personal property.D . A bond issue secured solely by a corporation asset is...
Which of the following actions on the part of a trustee is (are) a breach of his duties?
Which of the following actions on the part of a trustee is (are) a breach of his duties? I. Placing substantial amounts of cash from the sale of securities in a no interest bearing checking account for a period of years II. Investing all trust assets in securities that favor...
Which of the following courses of action will best accomplish these objectives?
A single man with substantial assets and income is supporting his 80-year-old partially senile mother with monthly cash gifts. He is trying to find a practical way to support his mother while at the same time saving federal gift and income taxes without giving up ultimate control of any assets....
All the following statements concerning installment sale tax treatment are correct EXCEPT:
All the following statements concerning installment sale tax treatment are correct EXCEPT:A . If the seller has a gain, the basis portion of each installment is received tax free.B . The seller must pay income tax on the interest portion of each installment.C . The entire purchase price may be...
What is the value of the policy for federal gift tax purposes?
On January 1, 2004 a father gave his daughter a $200,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are: Date of issue: July 1, 1992 Premium paid on July 1, 2003 $3200 Terminal reserve on July 1, 2003 20,000...
Which of the following statements concerning pooled-income funds is (are) correct?
Which of the following statements concerning pooled-income funds is (are) correct? L. A pooled income fund is similar to a mutual fund maintained by a qualified charity. ll. It is an irrevocable arrangement in which the remainder interest passes to charity.A . l onlyB . II onlyC . Both l...
