[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Topsya]

Hey guys!

Are death benefits paid by the employer of a person who died to a beneficiary taxable or not?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Gurufromeast]

@Topsya: Death benefits paid by employer to estate or any beneficiary of a deceased employee are taxable and Included in GI.

FAR - 10/07/2013 - 90
BEC - 12/02/2013 - 92
AUD - 71 - Rematch 5/27/2014 (This time I will own you)
REG - 04/28/2014

I strive for excellence not success, once you are knowledgeable and wise success will follow..

[Gurufromeast]

Anyone using GLEIM for REG or even thinking about using it SHOULD STOP.. ITS WORTHLESS for this section.

A week before exam I am changing over to Wiley.. I am frustrated with the information overload and stupid questions in Gleim.. Any suggestion if this is right move.. Need help “SOS” “SOS” “SOS” “SOS” “SOS” “SOS”

FAR - 10/07/2013 - 90
BEC - 12/02/2013 - 92
AUD - 71 - Rematch 5/27/2014 (This time I will own you)
REG - 04/28/2014

I strive for excellence not success, once you are knowledgeable and wise success will follow..

[msbond28]

Just Took ReG Today..I Feel Pretty Decent. The Second Testlet Appeared Harder..Idk..The SiMs I Knew A Few..But How Well I Applied It. idk.

B Waiting
A 76 -Ex. November 2014
R 60, 68, 76
F TBD

Yeager, Ninja Flash, Becker, Wiley Test Bank.

[Melans]

Hello all!!! Despite my best efforts, I couldn't hack studying during busy season so I was on a temporary sabbatical. However, the season is over and Sunday I am hitting the books again. I have not set a specific date yet, but I am using Becker and got half way through the material before throwing in the towel. I am going to take 2-3 weeks to review what I already got through and then hit up the new material.

How are the studies going for everyone else?

AUD 7/30/12 73; 12/2/13 85
BEC 7/19/13 81
REG 8/2/14 83
FAR - Jan 2015

[TargetCPA]

I'm back!!!

I started doing Mod 39 MCQs. What is the difference between two questions?

1. Steve and Kay Briar, US citizens, were married for the entire 2012 calendar year. In 2012, Steve gave a $30,000 cash gift to his sister. The Briars made no other gifts in 2012. They each signed a timely election to treat the $30,000 gift as made one-half by each spouse. Disregarding the applicable credit and estate tax consequences, what amount of the 2012 gift is taxable to the Briars?

a. $30,000

b. $ 6,000

c. $ 4,000

d. $0

2. Don and Linda Grant, US citizens, were married for the entire 2013 calendar year. In 2013, Don gave a $60,000 cash gift to his sister. The Grants made no other gifts in 2013. They each signed a timely election to treat the $60,000 gift as one made by each spouse. Disregarding the unified credit and estate tax consequences, what amount of the 2013 gift is taxable to the Grants?

a. $32,000

b. $46,000

c. $60,000

d. $0

In the 1st MCQ, as made one-half by each spouse.

In the 2nd MCQ, as one made by each spouse.

1st is old question, so I couldn't get the right answer. If I assume for 2013, answer would be $1,000 or $2,000.

Anyone going through Gift tax?

[TargetCPA]

1st MCQ answer would be the amount taxable is $2,000 ($30,000 – $28,000 [two annual exclusions of $14,000 each]).

Got it!!

[Only Reg Left]

@TargetCPA, I've never heard of the term “one made by each spouse”. Husband and Wife can't file a joint gift tax return and the question clearly states that $60,000 was gifted. I'm assuming it's the same as “one-half by each spouse”.

So for your second MCQ, each one files a separate Form 709 showing $30,000 as a gift made to the sister. The taxable amount would be $32,000 for the Grants. Let me know if I'm wrong. Thanks.

AUD - 68, 77
REG - 84* (Expired)
FAR - 83
BEC - 74, 74, 72, 72, 84

[TargetCPA]

This is the actual answer for 2nd MCQ from Roger:

A taxpayer may give gifts up to $14,000 to an individual w/o being subject to gift tax.

When a gift is made by a married individual, the husband and wife may elect to treat the gift as given equally by each, in which case each would be entitled to the $14,000 exemption.

A total of $28,000 of the $60,000 gift would be exempt making the remaining $32,000 taxable.

I confused with the terms “one made by each spouse” & “made one-half by each spouse”.

[Only Reg Left]

So then my aforementioned explanation stands. Both terms mean the same thing and are interchangeable.

You treat each husband and wife as splitting the gift, so both get the $14,000 exemption.

AUD - 68, 77
REG - 84* (Expired)
FAR - 83
BEC - 74, 74, 72, 72, 84

[TargetCPA]

Yes you are right!!!

[Topsya]

@TargetCPA

The first question says: “In 2012, Steve gave a $30,000 cash gift to his sister.”

in 2012 the exclusion amount was $13,000 per donor.

13,000 x 2 = $26,000

$30,000-$26,000 = $4,000

my answer is (c)

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[TargetCPA]

You are right Topsy. Its for 2012 and answer is $4,000.

But If we assume for 2013, the maximum gift before it becomes taxable is $14,000. So the answer is $2,000.

14,000 x 2 = $28,000

$30,000-$28,000 = $2,000

[TargetCPA]

Estate tax MCQ:

Fred and Ethel (brother and sister), residents of a noncommunity property state, own unimproved land that they hold in joint tenancy with rights of survivorship. The land cost $100,000 of which Ethel paid $80,000 and Fred paid $20,000.

Fred died during 2013 when the land was worth $300,000, and $60,000 was included in Fred’s gross estate. What is Ethel’s basis for the property after Fred’s death?

a. $140,000

b. $240,000

c. $260,000

d. $300,000

[golfball7773]

Since it joint tenancy with rights of survivorship, wouldn't Ethel take the fair market value? I got a question wrong like this last night.

FAR: 63, 55, 62
REG: 65, 77*
AUD: Fail, 64, 71
BEC: 72, 74, 81

*expired

[Author]

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