Tax Consulting Estate and Gift Tax

Question 1

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

Accepted Answer

$18,000

Answer

$10,000

Answer

$15,000

Answer

$17,000

Question 2

The federal estate tax exemption (unified credit equivalent) for 2024 is approximately:

Accepted Answer

$13.61 million

Answer

$3.5 million

Answer

$7.5 million

Answer

$12.92 million

Question 3

What is the 'step-up in basis' rule for inherited property?

Accepted Answer

Inherited property receives a new basis equal to fair market value at the date of death

Answer

Heirs must use the decedent's original cost basis

Answer

Basis is increased by the amount of estate tax paid

Answer

No basis adjustment occurs for inherited assets

Question 4

Which estate planning trust allows a surviving spouse to postpone estate taxes until the second spouse's death?

Accepted Answer

Qualified Terminable Interest Property (QTIP) Trust

Answer

Bypass Trust (Credit Shelter Trust)

Answer

Irrevocable Life Insurance Trust (ILIT)

Answer

Grantor Retained Annuity Trust (GRAT)

Question 5

What is 'portability' in the context of estate taxes?

Accepted Answer

A deceased spouse's unused estate tax exemption can be transferred to the surviving spouse

Answer

The ability to transfer assets across state lines tax-free

Answer

The right to move retirement accounts without tax

Answer

Carrying forward unused charitable deductions

Question 6

The federal gift tax return is filed on which form?

Accepted Answer

Form 709

Answer

Form 706

Answer

Form 1041

Answer

Schedule D of Form 1040