Questions from Federal Taxation

Q: Explain the difference between the estate tax treatment for gift taxes paid

Explain the difference between the estate tax treatment for gift taxes paid on gifts made two years before death and on gifts made ten years before death.

Q: A client is considering making a very large gift. She wants

A client is considering making a very large gift. She wants to know whether the gross-up rule will apply to the entire amount of gift taxes paid by both her and her spouse if the spouses elect gift sp...

Q: A widow owns a valuable eighteenth-century residence that she would

A widow owns a valuable eighteenth-century residence that she would like the state historical society to own someday. Explain to her the estate tax consequences of the following two alternatives: a....

Q: When does the consideration furnished test apply to property that the decedent

When does the consideration furnished test apply to property that the decedent held as a joint tenant with right of survivorship?

Q: Describe two circumstances in which life insurance on a decedent’s life is

Describe two circumstances in which life insurance on a decedent’s life is includible in the gross estate under Sec. 2042. If insurance policies on the decedent’s life escape being included under Sec....

Q: XYZ Limited Partnership has more than 300 partners and is publicly traded

XYZ Limited Partnership has more than 300 partners and is publicly traded. XYZ was grandfathered under the 1987 Tax Act and has consistently been treated as a partnership. In the current year, XYZ wil...

Q: Indicate two situations in which property that has previously been subject,

Indicate two situations in which property that has previously been subject, at least in part, to gift taxation is nevertheless included in the donor decedent’s gross estate.

Q: Joe’s will required property to be put in trust with a bank

Joe’s will required property to be put in trust with a bank as trustee. His will named his sister Tess to receive the trust income annually for life and empowered Tess to will the property to whomever...

Q: Carlos died six years before his wife Maria died. His will

Carlos died six years before his wife Maria died. His will called for the creation of a trust to be funded with $1 million of property. The bank trustee was required to distribute all the trust income...

Q: List the various categories of estate tax deductions, and compare them

List the various categories of estate tax deductions, and compare them with the categories of gift tax deductions. What differences exist?