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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.3 Estate Tax Deductions  >  1.3.6 Estate Tax Calculation and Form 706  >  Basic Quiz

Basic Quiz - 1.3.6 Estate Tax Calculation and Form 706

1. Noncharitable gifts made over 10 years ago and properly reported by an individual are not considered when determining the person's estate tax liability.
           
2. The estate tax exemption and the gift tax exemption are the same amounts because they are based on a unified system.
           
3. If an individual transfers an estate that does not exceed his or her estate tax exemption amount, the individual is entitled to a refund of the unused credit amount.
           
4. An estate tax return is filed on Form 706.
           
5. Payment of any estate taxes is due when the estate tax return is due.
           
6. Filing Form 706 will start the three-year statute of limitations clock.
           
7. Because the estate tax is imposed on the value of property transferred, many decedents wish to minimize the value of such property for estate tax valuation purposes.
           
8. Family limited partnerships (FLPs), limited liability companies (LLCs), and grantor retained annuity trusts (GRATs) are popular methods for reducing values for gift and estate tax purposes.
           
9. Today, most estate tax audits by the Internal Revenue Service focus on valuation issues and the validity of the valuation discounts taken by taxpayers.
           
10. The Tax Code provides an unlimited estate tax deduction for transfers to charity and to spouses.