The primary difference between a life estate and a fee simple absolute estate is that life estates O automatically terminate upon the death of a named person. O are descendible. O are devisable. O are not subject to corporate tax.
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The primary difference between a life estate and a fee simple absolute estate is that life estates
O automatically terminate upon the death of a named person.
O are descendible.
O are devisable.
O are not subject to corporate tax. *
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- It is a tax levied on an heir's inherited portion of an estate if the estate's value surpasses an exclusion limit set by law. a. Estate Tax b. Personal Income Tax c. Consumption Tax d. Property TaxOf the following statements regarding the estate tax, which is true? O A decedent's taxable estate is never greater than the probate estate. 4 O The taxable estate is reduced by deductions for decedent liabilities, funeral costs, and administrative costs of settling the estate. O The estate tax is not reduced by transfers to the decedent's spouse. O The estate tax exclusion is not reduced by any lifetime gift tax exclusion used by the decedent.The general rule is that someone who inherits property has a tax basis in that property equal to its FMV on the date of the decedent’s death. But there are two exceptions to this rule. Explain both of them briefly.
- Are heirs oblige/responsible/liable to file and pay for the Estate Tax of the Estate?Which is FALSE in partial disposition of estate? O The taxpayer is required to execute an undertaking that the proceeds shall be exclusively used for the payment of estate tax O In case of failure to pay, total estate tax due shall be immediately due and demandable without penalties if taxpayer has justifiable reason O The estate is still required to file the estate tax return within the prescriptive period The BIR may allow the sale of a portion of property without payment of estate tax provided the proceeds shall be used for the payment of estate taxAll the following are exampies of non-taxable income, except Select one O a. Proceeds received as beneficiary of a life insurance contract due to the death of the insured O b. income from illegal activities OC Shares of stock received as an inheritance O d. Cash received as a gift Oe All of these are non-taxable
- A federal tax levied on the value of the inheritance of a deceased person to transmit his or her property and life insurance at death is called a(n) tax. Multiple Choice O O trust income gift inheritance estate estate incomept Which of the following statements concerning the inheritance tax (IHT) treatment of married couples is correct? O Married couples are taxed as a single chargeable person for IHT purposes during lifetime and on death O Married couples are taxed separately for IHT purposes, with gifts made between spouses, on death only, exempt from IHT O Married couples are taxed as a single chargeable person for IHT purposes, although their death estates are taxed separately O Married couples are taxed separately for IHT purposes, with gifts made between spouses, both during lifetime and on death, exempt from IHTOne of the following is not a requisite of a taxable income. * a. There must be gain b. The gain must be realized or received c. The gain must not be excluded by law from taxation d. The gain must be that of resident or nonresident citizen e. Answer not given
- 59 S1 - Estate tax is a tax on the transfer of estate upon death by the decedent to his beneficiaries. S2 - In all types of decedents, the basis of estate tax is net estate or net taxable estate. Group of answer choices Both are false S2 is true S1 is true Both are trueSelect one of choices (estate tax, inheritance tax, and gift tax) for the blank. ( ) is a tax on the right to receive property from a decedent. ( ) is a tax levied on the right to transfer property during a taxpayer’s lifetime. ( ) is a tax that imposed on the right to pass property at death. ( ) is imposed on transfers made during the owner’s life time. ( ) is imposed on the transferor at death. ( ) is imposed on the recipient.Question 6 Discuss estate taxes. When is an estate subject to and not subject to estate taxes? An estate may be taxed: (Select the best answer below) O after it in distributed to the heirs. O before or after it is distributed to the heirs. O before it is distributed to the beins. ifa nurviving spouse becomes the sole owner of the estate.