Questions from Federal Taxation

Q: What was the Congressional purpose for enacting the gift-splitting provisions

What was the Congressional purpose for enacting the gift-splitting provisions?

Q: Determine whether the following statement is true or false: Every donor

Determine whether the following statement is true or false: Every donor who makes a taxable gift incurs a gift tax liability. Explain your answer.

Q: Under what circumstances must the amount of the unified credit usually available

Under what circumstances must the amount of the unified credit usually available be reduced (by a maximum amount of $6,000) even though the donor has never claimed any unified credit?

Q: Which of the following items are considered to be inventory for purposes

Which of the following items are considered to be inventory for purposes of Sec. 751? a. Supplies b. Inventory c. Notes receivable d. Land held for investment purposes e. Lots held for resale

Q: Which of the following classifications make a shareholder ineligible to own stock

Which of the following classifications make a shareholder ineligible to own stock in an S corporation? a. U.S. citizen b. Domestic corporation c. Partnership where all the partners are U.S. citizens...

Q: Does the exemption from the gift tax for direct payment of tuition

Does the exemption from the gift tax for direct payment of tuition encompass payments of non- relatives’ tuition? Explain.

Q: Antonio would like to make a gift of a life insurance policy

Antonio would like to make a gift of a life insurance policy on his life. Explain to him what action he must take to make a completed gift.

Q: Assume that the properties included in Alex’s gross estate have appreciated during

Assume that the properties included in Alex’s gross estate have appreciated during the six-month period immediately after his death. May Alex’s executor elect the alternate valuation date and thereby...

Q: What is the purpose of the gift tax annual exclusion?

What is the purpose of the gift tax annual exclusion?

Q: In what circumstances do gifts fail to qualify for the annual exclusion

In what circumstances do gifts fail to qualify for the annual exclusion?