EXAM #1 – Formulas + Tests (CH. 1-7)

Question 1

Estate Formula: The Tentative Tax Base

Answer 1

Adjusted Gross Estate
Less: Marital Deduction
Less: Charitable Deduction
Less: State Death Tax Deduction
Equals: Taxable Estate
Plus: Post-1976 Adjusted Taxable Gifts (added back to gross up)
Equals: Tentative Tax Base

Question 2

Valuation Included in Decedent’s Gross Estate

Answer 2

(Trading price after date of death x number of days between date of death and the first preceding trade) +
(trading before date of death x number of days between date of death and the next subsequent trade)

All ➗ the sum of the days before and after the death date

Question 3

Gross Estate Inclusion

Answer 3

Value of Annuity at Decedent’s Death x (Decedent’s Cost Basis ➗ Total Annuity Cost Basis)