Question

8. Which of the following statements about the estate and gift tax is (are) correct? I. There is no estate or gift tax due at the death of the first spouse. II. There is no estate or gift tax due if a single mother gives her son a $35,000 car. I only b. II only Both I and II d. Neither I nor II a 9. Which tax form should Jack and Jill a married couple file if they need to use itemized deductions (schedule A) and schedule C for Jill's self-employment income. They have a combined income of $315,000. a. The 1040 EZ form b. The 1040 A form c. The 1040 form d. The 1040 K form 10. Your client is Adam. He was divorced from Eve on December 1st of this year. Adam and Eve did not have any children. What filing status will Adam have this year? a. Head of household b. Married filing separately c. Married filing jointly d. Single

Answer 1

Q8 (a) I only is correct

Because unlimited marital deduction, the amount of property that can be transferred between spouses is unlimited, meaning that a spouse can transfer all of his or her property to the other spouse, during lifetime or at death, without incurring any federal estate or gift tax liabilities on this first transfer

For estate and gift tax exemption is of only $15000. Therefore the second statement is not correct.

Q9 (a) 1040 EZ

Q10 (d) Single

Adam will considered as single tax payer for full tax year.