Solved by verified expert :2297. CHAPTER
19—FAMILY TAX PLANNING Question TF #16
One way to dispute the existence of large goodwill is to argue that the
decedent was a key person in the operation of the business.
a.
True
b. False
2298. CHAPTER
19—FAMILY TAX PLANNING Question TF #17
Application of the blockage rule has been limited to just the valuation of
stocks and bonds and not to other assets.
a.
True
b. False
2299. CHAPTER
19—FAMILY TAX PLANNING Question TF #18
A discount for valuation purposes is allowed when the stock involved represents
a minority interest.
a.
True
b. False
2300. CHAPTER
19—FAMILY TAX PLANNING Question TF #19
When stock in a public corporation is traded, a discount for lack of marketability
may be available.
a.
True
b. False
2301. CHAPTER
19—FAMILY TAX PLANNING Question TF #20
Buy and sell agreements can be used to help solve the estate tax valuation
problems involved in the transfer by death of an interest in a small business.
a.
True
b. False
2302. CHAPTER
19—FAMILY TAX PLANNING Question TF #21
If a stock redemption is to be carried out, a cross-purchase type of buy and
sell agreement must be involved.
a.
True
b. False
2303. CHAPTER
19—FAMILY TAX PLANNING Question TF #22
One of the advantages of an estate freeze is that the common stock is not
included in the gross estate of the donor.
.
True
b. False
2304. CHAPTER
19—FAMILY TAX PLANNING Question TF #23
In an estate freeze, the common stock is taxed twice—first upon the gift, and
second when the donor dies.
a.
True
b. False
2305. CHAPTER
19—FAMILY TAX PLANNING Question TF #24
When carrying out an estate freeze with family limited partnerships, the donors
make gifts of the general partnership interests but retain the limited
partnership interests.
a.
True
b. False
2306. CHAPTER
19—FAMILY TAX PLANNING Question TF #25
A donee’s income tax basis in property received as a gift will include any gift
tax paid by the donor.
a.
True
b. False
2307. CHAPTER
19—FAMILY TAX PLANNING Question TF #26
As to property received as a gift, a donee’s income tax basis for gain or loss
may not be the same.
a.
True
b. False
2308. CHAPTER
19—FAMILY TAX PLANNING Question TF #27
Richard and Marie are joint tenants in a tract of land. Upon Richard’s prior
death, Marie’s income tax basis in the land does not change.
a.
True
b. False
2309. CHAPTER
19—FAMILY TAX PLANNING Question TF #28
Rick and Gail are equal tenants in common in real estate. Upon Gail’s prior
death, Rick’s basis in the real estate does not change.
a.
True
b. False
2310. CHAPTER
19—FAMILY TAX PLANNING Question TF #29
The election by an estate of § 2032A (special use valuation as to real estate)
or § 2032 (the alternate valuation date) will have no effect on the income tax
basis of the property received by the heirs.
a.
True
b. False
2311. CHAPTER
19—FAMILY TAX PLANNING Question TF #30
Brad and Heather are husband and wife and live in New Mexico. Under Brad’s
will, his share of the community property passes to the children. Upon Brad’s
prior death, there will be a change in Heather’s income tax basis in her half
of the community property.
a.
True
b. False
