Part XV: Other Tax Issues

Question 1

gift tax exclusion for education gifts

Answer 1

1. Unlimited exclusion for education gifts if the gift is for tuition and paid directly to the school.
2. The ed. institution generally needs to be in the U.S.
3. Exclusion does not apply to room and board.

Question 2

gift tax exclusion for medical gifts

Answer 2

Unlimited if the gift is paid directly to the medical provider.

Question 3

annual exclusion for a gift

Answer 3

$14k to any person.

Question 4

Can gifts of $14k offset other gifts of more than $14k?

Answer 4

No.

Question 5

gift tax exclusion for gifts to spouses

Answer 5

Unlimited.

Question 6

regular vs. alternate valuation date

Answer 6

Regular: assets in decedent’s estate valued at date of death.
Alternate: assets in decedent’s estate valued 6 mos. from the date of death.

Question 7

For a married couple that jointly owns their property, when one spouse dies…

Answer 7

half of the value of all assets is included in the estate of the first spouse to die.

Question 8

Can admin. exp. and/or selling exp. be deducted from a decedent’s gross estate?

Answer 8

Both are deductible.

Question 9

Can charitable contributions and/or funeral exp. be deducted from a decedent’s gross estate?

Answer 9

Both are deductible.

Question 10

When is an estate tax return due?

Answer 10

9 mos. after the date of death.