2

Question 1

Annuity

Answer 1

bene taxed on amt above cost basis

Question 2

ins pol

Answer 2

death bene not taxable

Question 3

inherited securities

Answer 3

cost baisis- current mkt val on day owner passed or 6 mo after

selling - long-term gain

Question 4

gifted sec

Answer 4

hold orig cost basis amt, take grandma’s hold period

Question 5

donations

Answer 5

ded fair mkt val on date of donation

Question 6

estate

Answer 6

int t-bills or money mkt

taxed file 1041

Question 7

estate taxes

Answer 7

gross estate minus

funeral, admin, debt, charity, martial direction

Question 8

estate taxes

gross estate includes which trust

Answer 8

revocable

not irrevocable

Question 9

net estate > ?? pay taxes

Answer 9

5 MM

Question 10

gift tax exclusions

Answer 10

14k annual exclusion
28k married

medicine
edu
political & charity contributions

Question 11

when is irrevocable trust taxed

Answer 11

when grantor maintains interest in property placed in trust.

ie living in house put in trust

Question 12

trust

int, div, cap gains

are taxable (y/n)

Answer 12

Yes

Question 13

simple trust

Answer 13

income distributed to bene annually

Question 14

complex turst

Answer 14

trust retains income to build principal

taxable

Question 15

progressive tax

Answer 15

income, estate, gifts

Question 16

regressive tax

Answer 16

flat tax

sales
gas
payroll
excise

Question 17

Mutual Funds

Answer 17

send 1099 for div

long-term cap gains

Question 18

Charity

• tax deduction is
• tax on appreciation?

Answer 18

• cash basis

- no if held long-term