or estate tax purposes, what date is used for valuation purposes? Multiple Choice Property is always valued at the date of distribution. Property is valued at the date of death although a reduction is allowed if the value declines within one year of death. Property is always valued at the date of death.

or estate tax purposes, what date is used for valuation purposes? Multiple Choice Property is always valued at the date of distribution. Property is valued at the date of death although a reduction is allowed if the value declines within one year of death. Property is always valued at the date of death.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 58P

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For estate tax purposes, what date is used for valuation purposes? Property is always valued at the date of death. Property is always valued at the date of distribution. Property is valued at the date of death unless the alternate date, which is the date of distribution or six months after death, whichever comes first, is selected. Property is valued at the date of death although a reduction is allowed if the value declines within one year of death.
For estate tax purposes, what date is used for valuation purposes? Choose the correct.a. Property is always valued at the date of death.b. Property is always valued at the date of distribution.c. Property is valued at the date of death unless the alternate date, which is the date of distribution or six months after death, whichever comes first, is selected.d. Property is valued at the date of death although a reduction is allowed if the value declines within one year of death.
Which of the following statements regarding the valuation of property for the purpose of applying the generation-skipping transfer tax (GSTT) are correct? For direct skips during life, the valuation date is the date of completion of the gift. For direct skips at death, the valuation date is the same as the valuation date used for estate tax purposes. If special use valuation is used for the estate tax calculation, the same value is used for a direct skip of such property in computing the GSTT. For indirect skips, the valuation date is the value of the property on the date that a taxable distribution or termination occurs. A)II, III, and IV B)I and III C)II and IV D)I, II, III, and IV
What is the homestead allowance? Choose the correct.a. A reduction of $20,000 in estate assets prior to computing the amount of federal estate taxes.b. The amount of property conveyed in a will to a surviving spouse.c. An allotment from an estate to a surviving spouse and/or minor and dependent children before any claims are paid.d. A decrease in the value of property on which state inheritance taxes are assessed. The reduction is equal to the value of property conveyed to a surviving spouse.
What is the homestead allowance? A reduction of $20,000 in estate assets prior to computing the amount of federal estate taxes. The amount of property conveyed in a will to a surviving spouse. An allotment from an estate to a surviving spouse and/or minor and dependent children before any claims are paid. A decrease in the value of property on which state inheritance taxes are assessed. The reduction is equal to the value of property conveyed to a surviving spouse.
These statements are presented to you for evaluation:Statement I – In order that a property previously taxed may be claimed as a deduction from the gross estate, such property must have been acquired by the present decedent either by gratuitous or onerous title within five years prior to his death.Statement II – When the exclusive property of the decedent was mortgaged to secure a loan obtained by the decedent for the education of the legitimate children of the spouses, the mortgage debt shall be a deduction from the exclusive properties of the decedent.In your evaluation of the foregoing statements: Group of answer choices Both statements are false. Only Statement I is true. Both statements are true. Only Statement II is true.
An estate is required to make estimated payments for any tax year ending two or more years after the decedent's date of death unless: * The estate had no tax liability in the preceding year, and the preceding year was at least six months. There are more than three beneficiaries. The balance due is less than $1,000, and the amount paid through withholding and credits is less than 90% of the current year's tax and less than 100% of the prior year's tax. There is no state tax due.
If a taxpayer excludes the gain on the sale of his personal residence and, within two years, sells a second residence, he or she can exclude (up to $250,000 for a single taxpayer): Multiple Choice The entire gain for any reason. A ratio of the days owned divided by 730 days for any reason. The entire gain on the second sale if the sale is due to health, employment reasons or unforeseen circumstances. A ratio of the days owned divided by 730 days and only if the sale is due to health, employment reasons or unforeseen circumstances.
Sally Anne Williams died on January 1, 2016. All of her property was conveyed to several relatives on April 1, 2016. For federal estate tax purposes, the executor chose the alternate valuation date. On what date was the value of the property determined? January 1, 2016 April 1, 2016 July 1, 2016 December 31, 2016
A sale of principal residence to purchase a new principal residence shall be exempt from tax of done: Once every 10 years and reported to BIR within 1 month from sale. Once every ten years and reported to BIR within 18 months from sale. Once every 10 years and reported to BIR within 2 months from sale. Once every 18 years and reported to BIR within 10 months from sale. Substituted filing of income tax returns is a manifestation of which principle of a sound tax system? Theoretical justice Fiscal adequacy administrative feasibility Equality
The general rule is that someone who inherits property has a tax basis in that property equal to its FMV on the date of the decedent’s death. But there are two exceptions to this rule. Explain both of them briefly.
Craig and Karen Conder purchased a new home on May 1 of year 1 for $200,000. At the time of the purchase, it was estimated that the real property tax rate for the year would be 1 percent of the property's value. How much in property taxes on the new home are the Conders allowed to deduct under each of the following circumstances? Assume the Conders' itemized deductions exceed the standard deduction before considering property taxes and the property tax is the only deductible tax they pay during the year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Required: The property tax estimate proves to be accurate. The seller and the Conders paid their share of the tax. The full property tax bill is paid to the taxing jurisdiction by the end of the year. The actual property tax bill was 1.05 percent of the property's value. The Conders paid their share of the estimated tax bill and the entire difference between the 1 percent estimate…