Friday, May 3, 2024
Taxation and Giving

1.3.6 Basic Quiz -- Estate Tax Calculation and Form 706
Noncharitable gifts made over 10 years ago and properly reported by an individual are not considered when determining the person's estate tax liability.
     True      False
The estate tax exemption and the gift tax exemption are the same amounts because they are based on a unified system.
     True      False
If an individual transfers an estate that does not exceed his or her estate tax exemption amount, the individual is entitled to a refund of the unused credit amount.
     True      False
An estate tax return is filed on Form 706.
     True      False
Payment of any estate taxes is due when the estate tax return is due.
     True      False
Filing Form 706 will start the three-year statute of limitations clock.
     True      False
Because the estate tax is imposed on the value of property transferred, many decedents wish to minimize the value of such property for estate tax valuation purposes.
     True      False
Family limited partnerships (FLPs), limited liability companies (LLCs), and grantor retained annuity trusts (GRATs) are popular methods for reducing values for gift and estate tax purposes.
     True      False
Today, most estate tax audits by the Internal Revenue Service focus on valuation issues and the validity of the valuation discounts taken by taxpayers.
     True      False
The Tax Code provides an unlimited estate tax deduction for transfers to charity and to spouses.
     True      False



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