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Estate_Tax_Quizzer__2_.pptx

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Estate Tax Quizzer Transfer Taxes 1. Which of the following statements is false? Transfer Tax is A. Imposed upon gratuitous transfer of property B. Of two kinds; estate tax and donors tax C. Cl... assified as national tax D. None of the above Answer: D 2. Statement 1: Gratuitous transfer or donation is subject to transfer tax. Statement 2: A donation which takes effect at a time of death of the donor is a donation mortis Causa subject to estate while a donation which takes effect during the lifetime of both the donor and the done is a donation inter-vivos subject to donor’s tax. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect Answer: C Gratuitous transfer: TAX: Donation inter-vivos donor’s tax (a transfer tax) Donation mortis causa Estate tax (a transfer tax) Onerous Transfer: Is the ordinary course of trade or business Business tax (vat or opt * excise tax / applicable) and income tax Not in the ordinary course of trade or business Not subject to business tax but may be subject to income tax 3. Statement 1: A sale is a form of transfer transaction that requires payment of transfer tax Statement 2: Transfer tax accrues at the time of transfer of the decedent’s property or rights to the heir. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect Answer: D  Transfer tax is applicable only to gratuitous transfers (inter-vivos and mortis causa donations) [Show More]

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