[TripleNetAcct]

As I am going through the Wiley Test Bank, some of the answers are using the $14,000 and some are using the $13,000. Which one should I be using on the exam?

Thanks in advance!

Happy Studies.

AUD 73 (Aug 12) 77
BEC 66 71 (Nov 12) 80
REG 54 81 (May 13) 81
FAR 63 (Dec 13) 75 TEXAS

[MCLKT]

$13,000 for 2012

https://www.irs.gov/uac/In-2012,-Many-Tax-Benefits-Increase-Due-to-Inflation-Adjustments

But if the question states otherwise, I use what is stated in the question. So even if you KNOW the 2012 exclusion is 13k. If they say, “Bob gave his friend $20k in 2012. The gift exclusion for 2012 is $14k. What amount of gift is taxable to Bob”.

a. 20k

b. 6k

c. $0

d. 7k

I would pick B. If they state a number in a question as fact, I go with it.

I'm curious what others think though???

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[rolltide88]

They will give u this number in the question. I promise

FAR- 78 (Nov)
AUD- 90 (Jan)
BEC- 81 (Feb)
REG- 89 (May)

[smp73]

Go with what is in the queston. They will most likely give it to you.

I only noticed the $14,000 number being used for 2013 year questions.

So going into the exam if it was not given I planned to use $13,000 for any thing 2012 or older and $14,000 for 2013.

NYS CPA License # 113563
CIA: Done as of 2/15/14

Training for a half marathon post studying!

[TripleNetAcct]

Thanks everyone.

AUD 73 (Aug 12) 77
BEC 66 71 (Nov 12) 80
REG 54 81 (May 13) 81
FAR 63 (Dec 13) 75 TEXAS

[JollyRoger]

Here is a question. if the amount is over 13,000 (or 14,000) doesn't lifetime estate exclusion amount of 5,250,000 kick in? As I understand, aside from a 14,000 per year/per person exclusion we have a lifetime estate exclusion of 5,120,000 in 2012 (5,250,000 in 2013) that we can use until we exhaust it

There is a question in Wiley where one person gives a friend a gift of 15,000. The question was how much maximum exclusion he is entitled to? The answers were:

0

15,000

12,000

13,000

After we apply 13,000 or 14,000 annual exclusion, can't we apply the unified lifetime credit for the remainder of the amount, for the answer of 15,000? (btw, the correct answer was 13,000). If we cannot – why? Did I miss something in the way question was worded?

BTW, in the same problem: it was stated clearly 2013, and in the explanation part it said the exclusion of 14,000 (13,000 for 2012) is applicable. Then after stating 2013 they make 13,000 the correct answer… What in the world?!!

[Author]

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