American College HS330 Exam - Topic 1 Question 11 Discussion

Actual exam question for American College's HS330 exam

Question #: 11
Topic #: 1

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. The additional facts are:

Widower's basis in the real estate $400,000

Value of the real estate when gifted 1,000,000

Value of the real estate on date of death 2,000,000

Amount of gift tax paid by widower 345,800

Assuming the widower made no additional gifts to his son, all the following statements concerning this situation are correct EXCEPT:

AThe gift of the real estate is included in the calculation of the widower's federal estate tax as an adjusted taxable gift

BThe gift tax paid is brought back into the widower's gross estate at $345,800.

CThe widower recognized no gain for income tax purposes at the time the gift was made.

DThe son's income tax basis in the real estate is $2,000,000.

Show Suggested Answer

Suggested Answer: D

by Herminia at May 03, 2022, 12:36 PM

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Albina

4 months ago

I thought the basis would be the original amount, not the market value.

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Quentin

4 months ago

The gift tax paid gets added back to the estate, right?

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Luann

4 months ago

Wait, the son's basis is $2M? That seems off.

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Teddy

4 months ago

Totally agree, that's how it works!

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Yvette

5 months ago

The gift is included in the estate tax calculation.

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Ruth

5 months ago

The LineSortField special field sounds interesting, but I'm not sure if that's the most efficient way to handle this requirement. I may need to explore the other options to see which one is the cleanest and most maintainable solution.

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Dulce

5 months ago

This seems like a straightforward question about inventory management. I'll need to think through the tradeoffs between centralized and decentralized safety stock to determine the best approach.

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Louvenia

5 months ago

I'm a bit confused on this one. Do I need to use both the DataRaptor Extract Action and the REST API Action, or can I just use one of them?

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