Saturday, May 4, 2024
Taxation and Giving

1.4.3 Basic Quiz -- Inclusion Ratio - Applicable Fraction
The GSTT rate uses the same tax rates as the gift and estate tax.
     True      False
The top estate tax rate is permanently set at 55%.
     True      False
The amount of GSTT due is computed by multiplying the taxable amount by the applicable rate.
     True      False
The taxable amount in the case of a taxable distribution is the value of the property received reduced by the GSTT exemption.
     True      False
The taxable amount in the case of a taxable termination is the value of all the property to which the termination has occurred reduced for certain expenses, such as taxes and debts attributable to the property.
     True      False
Tax is due in the case of a direct skip if the value of the property transferred is less than the GSTT exemption.
     True      False
The value of a generation-skipping transfer is reduced by any consideration given by the transferee.
     True      False
The applicable rate (i.e., actual rate used in computing the GSTT) for GSTT purposes is the maximum federal rate multiplied by the inclusion ratio.
     True      False
The GSTT planning goal is to allocate sufficient GSTT exemption so that the inclusion ratio is zero.
     True      False
The applicable fraction allows reductions for estate taxes, charitable deductions, and marital deductions.
     True      False



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