Exam 13: The Estate Tax

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A) The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date.
B) If the alternate valuation date is elected,changes in value that occur solely because of a "mere lapse of time" usually are to be ignored.
C) The alternate valuation date can be elected for estate tax purposes only if the election decreases the value of the gross estate and estate tax liability (after reduction for credits) .
D) If property is sold within 6 months of the date of death,the alternative valuation date is the date of sale.

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A) it establishes the value of the disclaimed assets.
B) it qualifies the assets for the alternative valuation date.
C) it is not treated as a gift made by the person who disclaims.
D) it allows the person making the disclaimer to determine the recipient.

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A) The unified credit is the only credit common to both the gift and estate tax computation.
B) For estate tax purposes,publicly traded stocks are valued at their closing price on the date of death.
C) Stocks traded on a stock exchange are valued at the closing price for the date of death unless the alternate valuation date is elected.
D) All of the above are false.

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A) The tax base for the federal estate tax is the total of the decedent's taxable estate and post-1976 taxable gifts.
B) Property included in a decedent's gross estate consists of only that property to which the decedent held title.
C) Funeral expenses are not deductible from the gross estate.
D) All of the above are false.

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