American College HS-330 Online Practice Questions and Exam Preparation

American College HS-330 Online Questions & Answers

• Question 91:

  All the following items are allowed as a deduction from a decedent's gross estate to determine the decedent's adjusted gross estate EXCEPT:

  A. Payments of estate debts.
  B. Expenses incurred in the presentation of probate assets.
  C. Costs of distributing probate assets to estate beneficiaries.
  D. Expenses incurred for the benefit of individual heirs.
  D. Expenses incurred for the benefit of individual heirs.

• Question 92:

  Which of the following statements concerning the inclusion in a decedent-employee's gross estate of a lump-sum distribution from a qualified retirement plan to a beneficiary other than the employee's estate is (are) correct?

  1.

  Lump-sum distributions of payments attributable to the employer's contributions are excluded from the gross estate.

  2.

  Lump-sum distributions of payments attributable to the decedent-employee's contributions are excluded from the gross estate.

  A. Neither 1 nor 2
  B. Both 1 and 2
  C. 1 only
  D. 2 only
  A. Neither 1 nor 2

• Question 93:

  Which of the following statements concerning ownership of property in the form of a joint tenancy with right of survivorship is (are) correct?

  1.

  Either real or personal property may be owned as a joint tenancy with right of survivorship.

  2.

  Nonqualified joint tenants with right of survivorship may have unequal separate shares of the property.

  A. Neither 1 nor 2
  B. Both 1 and 2
  C. 1 only
  D. 2 only
  C. 1 only

• Question 94:

  If a grantor establishes an irrevocable trust, the income of the trust will be taxed to the grantor if it is used to pay premiums for life insurance on the life of

  A. the father of the grantor
  B. a child of the grantor
  C. the spouse of the grantor
  D. a grandchild of the grantor
  C. the spouse of the grantor

• Question 95:

  All the following statements concerning installment sale tax treatment are correct EXCEPT:

  A. The seller must pay income tax on the interest portion of each installment.
  B. If the seller has a gain, the basis portion of each installment is received tax free.
  C. Installments due after the seller's death are excludible from the seller's gross estate.
  D. The entire purchase price may be fully paid in any one taxable year other than the year in which the property is sold.
  C. Installments due after the seller's death are excludible from the seller's gross estate.

• Question 96:

  All the following statements concerning an estate for a term of years are correct EXCEPT:

  A. An interest may extend beyond the lifetime of the grantor.
  B. The tenant may transfer the property at the end of the term of his interest.
  C. It is an interest in property established for a specific duration.
  D. The tenant has the right to possess the property during the term of his interest.
  B. The tenant may transfer the property at the end of the term of his interest.

• Question 97:

  Believing that his death was imminent, a widower gave his son some real estate two years ago, and filed a timely gift tax return. The widower died on January 1st of this year. Additional facts are:

  -Widower's basis in the real estate $200,000

  -

  Value of real estate when gifted 510,000

  -

  Value of real estate on date of death 1,000,000

  -

  Amount of gift tax paid by widower 159,500

  A. The gift of the real estate is included in the calculation of the widower's federal estate tax as an adjusted taxable gift.
  B. The gift tax paid is brought back into the widower's gross estate at $159,500.
  C. The widower recognized no capital gain for income tax purposes at the time the gift was made.
  D. The son's income tax basis in the real estate is $1,000,000.
  D. The son's income tax basis in the real estate is $1,000,000.

• Question 98:

  Which of the following are ways of passing property from a deceased spouse to a surviving spouse so that the property will qualify for the federal estate tax marital deduction?

  1.

  When the surviving spouse receives the property by electing to take against the deceased spouse's will

  2.

  When the surviving spouse receives the property as a consequence of the qualified disclaimer of another beneficiary

  A. 2 only
  B. 1 only
  C. Neither 1 nor 2
  D. Both 1 and 2
  D. Both 1 and 2

• Question 99:

  All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:

  A. A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.
  B. The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.
  C. The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.
  D. An estate may deduct the value of the remainder interest in a charitable remainder trust.
  B. The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.

• Question 100:

  All the following statements concerning qualification of property for the federal estate tax marital deduction are correct EXCEPT:

  A. The property interest passing to the surviving spouse must be includible in the decedent's gross estate.
  B. The property received by a surviving spouse after a successful will contest fails to qualify.
  C. The property interest must be includible in the surviving spouse's estate at death unless consumed or given away.
  D. The surviving spouse must receive the property as the beneficial owner rather than as a trustee for someone else.
  B. The property received by a surviving spouse after a successful will contest fails to qualify.