QUESTION: 225

All the following statements concerning ownership of property in the form of a joint tenancy with right of survivorship are correct EXCEPT:

Joint tenants need not be related either by blood or marriage.
Either real property or personal property may be the subject of this type of ownership.
Upon the death of a joint tenant, his interest in the property passes to his estate or heirs.
All joint tenants must have equal interests in the property.

Answer(s): C

Reveal Solution Next Question

A father deeded a house as a gift to his daughter in 1990 but retained the right to live in it until his death. He died this year, while still living in the house. The following are relevant facts:

The father bought the property in 1980 for $140,000. The fair market value of the property when the gift was made in 1990 was $170,000. The father filed a timely gift tax return but paid no gift tax because of the applicable credit amount. The fair market value of the property at the father's death was $200,000. The daughter sold the property 3 months after her father's death for $200,000. She had a gain of

$200,000
$160,000
$130,000
0

Answer(s): D

Reveal Solution Next Question

QUESTION: 227

A single man with substantial assets and income is supporting his 80-year-old partially senile mother with monthly cash gifts. He is trying to find a practical way to support his mother while at the same time saving federal gift and income taxes without giving up ultimate control of any assets. Which of the following courses of action will best accomplish these objectives?

Purchase corporate bonds that pay interest in an amount sufficient for her to support herself and assign the interest payments to her
Make her a gift of enough corporate bonds from his portfolio so that she will be able to support herself from the interest payments
Make her annual gifts of enough interest income from the tax free municipal bonds in his portfolio so that she will be able to support herself
Make her an interest free loan with a principal amount large enough to produce sufficient income for her support when invested in corporate bonds

Answer(s): C

Reveal Solution Next Question

QUESTION: 228

The owner of a successful business wishes to sell it to his employee-son so that he can retire. The business is worth substantially more than the owner's basis. The owner and the employee-son have agreed to an installment sale. Which of the following statements concerning this sale is (are) correct?
1. The present value of any unpaid installments remaining at the owner's death is includible in his estate.
2. Installment payments are received free of income tax until the seller recovers his basis.

Neither 1 nor 2
Both 1 and 2
1 only
2 only

Answer(s): C

Reveal Solution Next Question

Free HS330 Exam Braindumps (page: 57)

QUESTION: 225

QUESTION: 226

QUESTION: 227

QUESTION: 228