Taxes

Question 1

Ad valorem Taxes

Answer 1

Taxes based on value of a particualr good or service

Sales tax, estate tax, gift tax

Question 2

Progressive or regressive Taxes

Answer 2

Increase/decreased as income/wealth increase/decrease

Question 3

Qualified Disclaimer

Answer 3

If a person makes a Q.D. it is treated as they had never recieved for taxes if

• Refused in writing
• Reiceved by person
• Did not accept interest or any benefits
• Because of refsual it passes without any direction of the disclaimer

Question 4

Credit

Answer 4

Applied after calculating tentative tax liability and reduces amount of taxes owed

Question 5

Unlimited Deductions w/ No taxes

Answer 5

Charitable gifts that fall into categories deemed to be a charity by law

transfers between spouses who are U.S. citizens with a non terminable interest

Question 6

Deduction defintion

Answer 6

Subtracted from tax base before liability is calculated and before tax rate is applied

Question 7

Testamentary Transfer defintion

Answer 7

Gift or transfers that are not complete until death and allow a donor to retain control, possession, and use of prop until death

Question 8

Gross estate

Answer 8

Virtually all property owned or in control of, has an interest in, gave away 3 years proceeding death, or benefits in some way

This is what is taxed

Question 9

Gift Taxes Application

Answer 9

Gift = situation where one individual confers an economic benefit on another without compensation

Gift is complete when owner has parted all dominion and control of any/part of to leave them with no power to change its disposition

Taxed on transfer of a complete gift

Question 10

2 exemptions for gift taxes

Answer 10

1) Under annual exclusion amount (in 2020 15K)
2) Gifts for education and medical expneses

Question 11

Selling Property

Answer 11

Taxed on difference between amount realized and basis

A.R = whatever an individual receives
Basis = historic cost of asset