CPB CPB Tax Planning & Optimization

Question 1

What is the annual federal gift tax exclusion amount per recipient for 2024?

Accepted Answer

$18,000

Answer

$17,000

Answer

$15,000

Answer

$20,000

Question 2

Which tax strategy involves deliberately selling investments at a loss to offset realized capital gains?

Accepted Answer

Tax-loss harvesting

Answer

Tax deferral

Answer

Tax-exempt investing

Answer

Income shifting

Question 3

What is the federal long-term capital gains tax rate applicable to the highest income bracket?

Accepted Answer

20%

Answer

15%

Answer

25%

Answer

37%

Question 4

Which retirement account allows qualified withdrawals in retirement to be completely tax-free?

Accepted Answer

Roth IRA

Answer

Traditional IRA

Answer

SEP IRA

Answer

SIMPLE IRA

Question 5

The 'step-up in basis' rule provides that inherited assets receive a cost basis equal to:

Accepted Answer

The fair market value on the date of the decedent's death

Answer

The original purchase price

Answer

The average of purchase price and date-of-death value

Answer

Zero basis for tax purposes

Question 6

Which type of trust is most effective for removing assets from a taxable estate because it cannot be revoked?

Accepted Answer

Irrevocable trust

Answer

Revocable living trust

Answer

Testamentary trust

Answer

Blind trust