Taxable Gifts - CPA Regulation (REG)
Card 1 of 24
Assuming tax law in effect during 2019, what amount of a decedent’s taxable estate is effectively tax free if the maximum applicable estate and gift tax credit is taken?
Assuming tax law in effect during 2019, what amount of a decedent’s taxable estate is effectively tax free if the maximum applicable estate and gift tax credit is taken?
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The max amount that can be transferred pursuant to a death tax free is $11,400,000.
The max amount that can be transferred pursuant to a death tax free is $11,400,000.
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Of the following, which is a valid deduction from a decedent’s gross estate?
Of the following, which is a valid deduction from a decedent’s gross estate?
Tap to reveal answer
Expenses of administering and settling the estate are valid deductions from a decedent’s gross estate.
Expenses of administering and settling the estate are valid deductions from a decedent’s gross estate.
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Of the following, which transfer of money would require filing a full gift tax return?
Of the following, which transfer of money would require filing a full gift tax return?
Tap to reveal answer
As of 2020, the exclusion amount for a gift tax is $15,000. This means that funds in excess of $15,000 not excluded, such as a medical payment or tuition, must have a return filed for them.
As of 2020, the exclusion amount for a gift tax is $15,000. This means that funds in excess of $15,000 not excluded, such as a medical payment or tuition, must have a return filed for them.
← Didn't Know|Knew It →
Which of the following payments requires the filing of a gift tax return?
Which of the following payments requires the filing of a gift tax return?
Tap to reveal answer
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
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On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
Tap to reveal answer
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
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Parents lend $2,000,000 to their child to start a business. The loan is interest free and is payable on demand. The imputed interest is subject to:
Parents lend $2,000,000 to their child to start a business. The loan is interest free and is payable on demand. The imputed interest is subject to:
Tap to reveal answer
In this instance, the parents gave an advantageous loan to their child, the sort of which they would not give to a third party at arm’s length. As a result, the “lost” interest income (had they made a loan to another party at arm’s length) each year is treated the same as a gift.
In this instance, the parents gave an advantageous loan to their child, the sort of which they would not give to a third party at arm’s length. As a result, the “lost” interest income (had they made a loan to another party at arm’s length) each year is treated the same as a gift.
← Didn't Know|Knew It →
Which of the following payments requires the filing of a gift tax return?
Which of the following payments requires the filing of a gift tax return?
Tap to reveal answer
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
← Didn't Know|Knew It →
On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
Tap to reveal answer
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
← Didn't Know|Knew It →
Parents lend $2,000,000 to their child to start a business. The loan is interest free and is payable on demand. The imputed interest is subject to:
Parents lend $2,000,000 to their child to start a business. The loan is interest free and is payable on demand. The imputed interest is subject to:
Tap to reveal answer
In this instance, the parents gave an advantageous loan to their child, the sort of which they would not give to a third party at arm’s length. As a result, the “lost” interest income (had they made a loan to another party at arm’s length) each year is treated the same as a gift.
In this instance, the parents gave an advantageous loan to their child, the sort of which they would not give to a third party at arm’s length. As a result, the “lost” interest income (had they made a loan to another party at arm’s length) each year is treated the same as a gift.
← Didn't Know|Knew It →
Assuming tax law in effect during 2019, what amount of a decedent’s taxable estate is effectively tax free if the maximum applicable estate and gift tax credit is taken?
Assuming tax law in effect during 2019, what amount of a decedent’s taxable estate is effectively tax free if the maximum applicable estate and gift tax credit is taken?
Tap to reveal answer
The max amount that can be transferred pursuant to a death tax free is $11,400,000.
The max amount that can be transferred pursuant to a death tax free is $11,400,000.
← Didn't Know|Knew It →
Of the following, which is a valid deduction from a decedent’s gross estate?
Of the following, which is a valid deduction from a decedent’s gross estate?
Tap to reveal answer
Expenses of administering and settling the estate are valid deductions from a decedent’s gross estate.
Expenses of administering and settling the estate are valid deductions from a decedent’s gross estate.
← Didn't Know|Knew It →
Of the following, which transfer of money would require filing a full gift tax return?
Of the following, which transfer of money would require filing a full gift tax return?
Tap to reveal answer
As of 2020, the exclusion amount for a gift tax is $15,000. This means that funds in excess of $15,000 not excluded, such as a medical payment or tuition, must have a return filed for them.
As of 2020, the exclusion amount for a gift tax is $15,000. This means that funds in excess of $15,000 not excluded, such as a medical payment or tuition, must have a return filed for them.
← Didn't Know|Knew It →
Which of the following payments requires the filing of a gift tax return?
Which of the following payments requires the filing of a gift tax return?
Tap to reveal answer
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
← Didn't Know|Knew It →
On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
Tap to reveal answer
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
← Didn't Know|Knew It →
Parents lend $2,000,000 to their child to start a business. The loan is interest free and is payable on demand. The imputed interest is subject to:
Parents lend $2,000,000 to their child to start a business. The loan is interest free and is payable on demand. The imputed interest is subject to:
Tap to reveal answer
In this instance, the parents gave an advantageous loan to their child, the sort of which they would not give to a third party at arm’s length. As a result, the “lost” interest income (had they made a loan to another party at arm’s length) each year is treated the same as a gift.
In this instance, the parents gave an advantageous loan to their child, the sort of which they would not give to a third party at arm’s length. As a result, the “lost” interest income (had they made a loan to another party at arm’s length) each year is treated the same as a gift.
← Didn't Know|Knew It →
Assuming tax law in effect during 2019, what amount of a decedent’s taxable estate is effectively tax free if the maximum applicable estate and gift tax credit is taken?
Assuming tax law in effect during 2019, what amount of a decedent’s taxable estate is effectively tax free if the maximum applicable estate and gift tax credit is taken?
Tap to reveal answer
The max amount that can be transferred pursuant to a death tax free is $11,400,000.
The max amount that can be transferred pursuant to a death tax free is $11,400,000.
← Didn't Know|Knew It →
Of the following, which is a valid deduction from a decedent’s gross estate?
Of the following, which is a valid deduction from a decedent’s gross estate?
Tap to reveal answer
Expenses of administering and settling the estate are valid deductions from a decedent’s gross estate.
Expenses of administering and settling the estate are valid deductions from a decedent’s gross estate.
← Didn't Know|Knew It →
Of the following, which transfer of money would require filing a full gift tax return?
Of the following, which transfer of money would require filing a full gift tax return?
Tap to reveal answer
As of 2020, the exclusion amount for a gift tax is $15,000. This means that funds in excess of $15,000 not excluded, such as a medical payment or tuition, must have a return filed for them.
As of 2020, the exclusion amount for a gift tax is $15,000. This means that funds in excess of $15,000 not excluded, such as a medical payment or tuition, must have a return filed for them.
← Didn't Know|Knew It →
On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
On July 1, Year 11, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in Year 12. If Vega did not request an extension of time for filing the Year 11 gift tax return, the due date for filing was:
Tap to reveal answer
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
The gift tax return date is the same date as individual tax returns, April 15 of the subsequent year of the transfer.
← Didn't Know|Knew It →
Which of the following payments requires the filing of a gift tax return?
Which of the following payments requires the filing of a gift tax return?
Tap to reveal answer
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
Payments made on another’s behalf paid directly to a health care provider for medical care or to an educational institution are not considered gifts for tax purposes. Additionally, the contribution to the political organization, while non-deductible for tax purposes, does not qualify as a gift (though there are limitations on amounts that may be contributed). Only the cash payment to the individual would require the filing of a gift tax return.
← Didn't Know|Knew It →