,1. Multiple Choice: Which of the following is not a deductible
expense when calculating the taxable income of an estate?
A) State inheritance taxes
B) Funeral expenses
C) Charitable contributions
D) Capital gains on property sales
Answer: D) Capital gains on property sales
Rationale: Capital gains on property sales are not considered
deductible expenses when calculating the taxable income of an
estate. They are instead subject to capital gains tax.
2. Fill-in-the-Blank: The unified credit against estate tax for the year
2021 was __________.
Answer: $11,700,000
Rationale: The unified credit provides a credit against the estate
tax due. For the year 2021, the amount was set at $11,700,000.
3. True/False: The annual exclusion for gift tax applies per
recipient, not per donor.
, Answer: True
Rationale: The annual exclusion for gift tax allows a donor to give
a certain amount to as many individuals as they wish without
incurring a gift tax, which means it applies per recipient.
4. Multiple Response: Select all that apply. Which of the following
are considered 'future interests' in property for gift tax purposes?
A) Reversionary interests
B) Remainder interests
C) Powers of appointment
D) Present interests
Answers: A) Reversionary interests, B) Remainder interests, C)
Powers of appointment
Rationale: Future interests in property, which are not eligible for
the annual exclusion for gift tax, include reversionary interests,
remainder interests, and powers of appointment. Present interests
are not considered future interests.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller qwertydocs. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.