Tax Policy and Administration Exam Review
Course Introduction
This course explores the foundational principles and practical issues in tax policy and administration, examining the design, implementation, and impact of tax systems at the national and international levels. Students will analyze the economic, social, and administrative goals of taxation, study various tax structures, and evaluate their effectiveness in promoting equity, efficiency, and simplicity. The course also delves into the administrative challenges faced by tax authorities, including compliance, enforcement, and reform, while considering the influence of global developments and digital economies on tax practices. Through case studies and policy analysis, students will gain the skills to critically assess and advise on tax matters affecting individuals, businesses, and governments.
Recommended Textbook
South Western Federal Taxation 2019 Comprehensive 42nd Edition by
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28 Chapters
4038 Verified Questions
4038 Flashcards
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Page 2
David M. Maloney
Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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211 Verified Questions
211 Flashcards
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Sample Questions
Q1) Virtually all state income tax returns contain checkoff boxes for donations to various causes. On what grounds has this procedure been criticized?
Answer: In many cases the procedure is overused (i.e., a multiplicity of boxes). This overuse adds complexity to the return. Also, in most cases the donation is being drawn from any income tax refund that might be due. Thus, taxpayers may not fully appreciate that they are paying for such checkoffs.
Q2) If a taxpayer files early (i.e., before the due date of the return), the statute of limitations on assessments begins on the date the return is filed.
A)True
B)False
Answer: False
Q3) The majority of IRS audits are handled by correspondence. A)True
B)False
Answer: True
Q4) What might cause an individual to owe income taxes in more than one state?
Answer: Working in more than one state, or owning income-generating property in more than one state.
Page 3
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Chapter 2: Working with the Tax Law
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Sample Questions
Q1) The Golsen rule has been overturned by the U.S. Supreme Court.
A)True
B)False
Answer: False
Q2) The research process should always begin with a tax service.
A)True
B)False Answer: False
Q3) Before a tax bill can become law, it must be approved (signed) by the President of the United States.
A)True
B)False
Answer: False
Q4) Which of the following types of Regulations has the highest tax validity?
A) Temporary
B) Legislative
C) Interpretive
D) Procedural
E) None of these
Answer: B
Page 4
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Chapter 3: Computing the Tax
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Sample Questions
Q1) In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?
A) In arriving at AGI, a taxpayer must elect between claiming deductions for AGI and deductions from AGI.
B) In arriving at taxable income, a taxpayer must elect between claiming deductions for AGI and deductions ???? ???.
C) If a taxpayer has deductions for AGI, the standard deduction is not available.
D) In arriving at taxable income, a taxpayer must elect between deductions for AGI and the standard deduction.
E) None of these.
Answer: E
Q2) Deductions for AGI are often referred to as "above-the-line" or "page 1" deductions. Explain.
Answer: "Above the line" means before the bottom line of page 1 of Form 1040, which is AGI. These deductions appear on page 1 of Form 1040.
Q3) Marginal income tax rate
Answer: c
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Page 5
Chapter 4: Gross Income: Concepts and Inclusions
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Sample Questions
Q1) In the case of a gift loan of less than $100,000, the imputed interest rules apply if the donee has net investment income of over $1,000.
A)True
B)False
Q2) On a particular Saturday, Tom had planned to paint a room in his house, but his employer gave him the opportunity to work that day. If Tom works, he must hire a painter for $120. For Tom to have a positive cash flow from working and hiring the painter:
A) Tom must earn more than $158 if he is in the 24% marginal tax bracket.
B) Tom must earn at least $158 if he is in the 32% marginal tax bracket.
C) Tom must earn at least $140 if he is in the 24% marginal tax bracket.
D) Tom must earn at least $120 if he is in the 12% marginal tax bracket.
E) None of these.
Q3) The fact that the accounting method the taxpayer uses to measure income is consistent with GAAP does not assure that the method will be acceptable for tax purposes.
A)True
B)False
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Page 6
Chapter 5: Gross Income: Exclusions
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Sample Questions
Q1) Sandy is married, files a joint return, and expects to be in the 24% marginal tax bracket for the foreseeable future. All of his income is from salary and all of it is used to maintain the household. He has a paid-up life insurance policy with a cash surrender value of $100,000. He paid $60,000 of premiums on the policy. His gain from cashing in the life insurance policy would be ordinary income. If he retains the policy, the insurance company will pay him at least $3,000 (3%) interest each year. Sandy thinks he can earn a higher return if he cashes in the policy and invests the proceeds.
a. What before-tax rate of return would Sandy be required to earn on the proceeds from cashing in the policy to equal the return earned with the insurance company?
b. Assume Sandy estimates he can earn a 6% before-tax rate of return on the proceeds from cashing in the policy. Assume he can earn a 6% return for the remainder of his life and that he will reinvest all earnings at the same 6% before-tax rate of return. If Sandy expects to live 10 more years, which alternative will yield the greater amount to his beneficiaries upon Sandy's death? (Given: The future value of an annuity in 10 years assuming a 4.32% after- tax return is 12.19. The future value of an annuity in 10 years assuming a 2.16% return is 11.03).
Q2) What Federal income tax benefits are provided for college students?
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Chapter 6: Deductions and Losses: In General
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Sample Questions
Q1) Beulah's personal residence has an adjusted basis of $450,000 and a fair market value of $390,000. Beulah converts the property to rental use this year. The vacation home rules that limit the amount of the deduction to the rental income will apply and the adjusted basis for depreciation is $390,000.
A)True
B)False
Q2) Which of the following is incorrect?
A) Alimony is a deduction for AGI.
B) The expenses associated with royalty property are a deduction from AGI.
C) Contributions to a traditional IRA are a deduction for AGI.
D) Property taxes on taxpayer's personal residence are a deduction from AGI
E) All of the above are correct.
Q3) The amount of the addition to the reserve for bad debts for an accrual method taxpayer is allowed as a deduction for tax purposes, but is not allowed for a cash method taxpayer.
A)True
B)False
Q4) Briefly discuss the disallowance of deductions for capital expenditures.
Q5) Are all personal expenses disallowed as deductions in 2018?
Q6) Under what circumstance can a bribe be deducted?
Page 8
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Sample Questions
Q1) A net operating loss occurring in 2018 can only be carried forward (no carryback exists).
A)True
B)False
Q2) Sally is an employee of Blue Corporation. Last year, she purchased a very expensive computer with her own funds. She used the computer 100% for business purposes. During the current year, the computer was completely destroyed in a fire. Blue Corporation did not reimburse her for her loss. Discuss whether Sally's loss will create or increase Sally's net operating loss.
Q3) The amount of a loss on insured personal use property is reduced by the insurance coverage if no claim is made against the insurer.
A)True
B)False
Q4) An individual may deduct a loss on rental property even if it does not meet the definition of a casualty loss.
A)True
B)False
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Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
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Sample Questions
Q1) On June 1, 2018, Red Corporation purchased an existing business. With respect to the acquired assets of the business, Red allocated $300,000 of the purchase price to a patent. The patent will expire in 20 years. Determine the total amount that Red may amortize for 2018 for the patent.
A) $0
B) $1,667
C) $11,667
D) $35,000
E) None of the above
Q2) Lindsey purchased a uranium interest for $10,000,000 on January 3, 2018, when recoverable reserves were estimated at 200,000 units. A total of 10,000 units were extracted in 2018 and 7,000 units were sold in 2018. Gross income from the property was $2,800,000 and taxable income without the allowance for depletion was $1,000,000. Determine her depletion deduction for 2018.
Q3) Discuss the requirements in order for startup expenditures to be amortized under § 195.
Q4) Taxpayers may elect to use the straight-line method under MACRS for personalty. A)True B)False
Page 10
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Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
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Sample Questions
Q1) Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.
A)True
B)False
Q2) Under the actual expense method, which, if any, of the following expenses will not be allowed?
A) Parking fines incurred during business use of a car.
B) Interest expense on a car loan (taxpayer is self-employed).
C) Auto insurance.
D) Auto club dues.
E) None of the above.
Q3) Cathy takes five key clients to dinner and incurs the following costs: $320 limousine rental, $920 drinks and dinner, and $200 tips? assume that there were substantive business discussions during dinner. Several days after the function, Cathy mails each client a pen costing $25. In addition, Cathy pays $4 for gift wrapping and mailing each pen. Assuming adequate substantiation and a business justification, what is Cathy's deduction?
Q4) The services are performed at Sue's premises.
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Q5) In terms of income tax treatment, what is the difference between common law and statutory employees?
Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Sample Questions
Q1) In Lawrence County, the real property tax year is the calendar year. The real property tax becomes a personal liability of the owner of real property on January 1 in the current real property tax year (assume this year is not a leap year). The tax is payable on June 1. On May 1, Reggie sells his house to Dana for $350,000. On June 1, Dana pays the entire real estate tax of $7,950 for the year ending December 31. Assuming that Reggie itemizes his deductions and the $10,000 limit on state and local taxes does not apply, how much of the property taxes may Reggie deduct?
A) $0
B) $2,614
C) $2,625
D) $7,950
E) None of the above
Q2) Charitable contributions that exceed the percentage limitations for the current year can be carried over for up to three years.
A)True
B)False
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Chapter 11: Investor Losses
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Sample Questions
Q1) Identify from the list below the type of disposition of a passive activity where the taxpayer keeps the suspended losses of the disposed activity and utilizes them on a subsequent taxable disposition.
A) Disposition of a passive activity by gift.
B) Disposition of a passive activity at death.
C) Installment sale of a passive activity.
D) All of the above.
E) None of the above.
Q2) Carl, a physician, earns $200,000 from his medical practice in the current year. He receives $45,000 in dividends and interest during the year as well as $5,000 of income from a passive activity. In addition, he incurs a loss of $50,000 from an investment in a passive activity. What is Carl's AGI for the current year after considering the passive investment?
A) $195,000
B) $200,000
C) $240,000
D) $245,000
E) None of the above
Q3) Material participation.
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Page 13
Chapter 12: Tax Credits and Payments
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Sample Questions
Q1) Rick spends $750,000 to build a qualified low-income housing project, which is placed in service on January 1, 2018. He financed the project using his personal funds. What is the amount of the low-income housing credit that Rick may claim in 2018 (assuming a rate of 7.40%)? What is the total amount of the credit that Rick may claim as a result of the $750,000 expenditure?
Q2) Describe the withholding requirements applicable to employers.
Q3) Some (or all) of the tax credit for rehabilitation expenditures will have to be recaptured if the rehabilitated property is disposed of prematurely or if it ceases to be qualifying property.
A)True
B)False
Q4) In the event that overwithholding of FICA tax occurs because the taxpayer has more than one employer, the excess amount should be claimed as a credit on the Federal income tax return of the employee.
A)True
B)False
Q5) Discuss the treatment of unused general business credits.
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Page 14
Chapter 13: Property Transactions: Determination of Gain or
Loss, Basis Considerations, and Nontaxable Exchanges
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Sample Questions
Q1) Matt, who is single, sells his principal residence, which he has owned and occupied for 5 years, for $435,000. The adjusted basis is $140,000 and the selling expenses are $20,000. Three days after the sale he purchases another residence for $385,000. Matt's recognized gain is $25,000 and his basis for the new residence is $385,000.
A)True
B)False
Q2) If the fair market value of the property on the date of death is greater than on the alternate valuation date, the use of the alternate valuation amount is mandatory.
A)True
B)False
Q3) The carryover basis to a donee for property received by gift can be an amount greater than the donor's adjusted basis.
A)True
B)False
Q4) Discuss the effect of a liability assumption on the seller's amount realized and the buyer's adjusted basis.
Q5) What is the general formula for calculating the adjusted basis of property?
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Chapter 14: Property Transactions: Capital Gains and
Losses, Section 1231, and Recapture Provisions
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Sample Questions
Q1) Tan, Inc., sold a forklift on April 12, 2018, for $8,000 (its FMV) to its 100% shareholder, Ashley. Tan's adjusted basis for the forklift was $12,000. Ashley's holding period for the forklift:
A) Includes Tan's holding period for the forklift.
B) Begins on April 12, 2018.
C) Begins on April 13, 2018.
D) Does not begin until Ashley sells the forklift.
E) None of the above.
Q2) Section 1231 gain that is treated as long-term capital gain carries from the 2017 Form 4797 to the 2017 Form 1040, Schedule D, line .
A) 8
B) 9
C) 10
D) 11
E) None of the above
Q3) Section 1231 property generally does not include accounts receivables arising in the ordinary course of business.
A)True
B)False
Page 16
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Chapter 15: Taxing Business Income
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Sample Questions
Q1) Alicia is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Alicia's $100,000 salary. In addition to her compensation, ABC pays Alicia dividends of $250,000. After reviewing comparable companies, you determine that reasonable compensation for someone with Alicia's experience and responsibilities is $200,000. What is Alicia's qualified business income?
A) $-0-.
B) $200,000.
C) $225,000.
D) $325,000.
E) None of the above.
Q2) The QBI deduction is:
A) An itemized deduction.
B) A deduction from AGI.
C) A deduction for AGI.
D) A deduction claimed on Schedule C.
Q3) The QBI deduction percentage matches the 21% tax rate applicable to C corporations.
A)True
B)False
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Chapter 16: Accounting Periods and Methods
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Sample Questions
Q1) A C corporation is required to annualize certain tax factors:
A) The first year the corporation is in existence, if the first tax return includes less than 12 months.
B) The last year the corporation is in existence.
C) The year the corporation changes its tax year.
D) When there has been a greater than 50% change in the ownership of the stock.
E) All of the above.
Q2) Yard Corporation, a cash basis taxpayer, received $10,000 from a customer in 2016. In 2016, the customer filed a claim for a refund of the fee. In 2017, Yard refunded the customer $6,000. In 2016, Yard paid $5,000 in estimated state income tax. In May 2017, Yard received a state income tax refund of $2,000 for overpayment of its 2016 income tax. Yard was in the 35% marginal tax bracket in 2016 and in the 15% marginal tax bracket in 2017. What are the tax effects of the 2017 payment to the customer and the collection of the state income taxes overpaid?
Q3) A positive § 481 adjustment from a change in method of accounting initiated by the taxpayer is spread equally over the year of change and the three following years.
A)True
B)False
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Chapter 17: Corporations: Introduction and Operating Rules
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Sample Questions
Q1) In the current year, Crimson, Inc., a calendar C corporation, has income from operations of $180,000 and operating deductions of $225,000. Crimson also had $30,000 of dividends from a 15% stock ownership in a domestic corporation. Which of the following statements is correct with respect to Crimson for the current year?
A) Crimson's NOL is $15,000.
B) A dividends received deduction is not allowed in computing Crimson's NOL.
C) The NOL is carried back 3 years and forward 10 years by Crimson.
D) Crimson's dividends received deduction is $15,000.
E) None of the above.
Q2) In working with Schedule M-2 (analysis of unappropriated retained earnings per books) of Form 1120, which of the following is an addition to beginning retained earnings?
A) Cash dividends.
B) Net loss per books.
C) Property dividends.
D) Net income per books.
E) None of the above.
Q3) Briefly describe the accounting methods available for adoption by a C corporation.
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Page 19
Chapter 18: Corporations: Organization and Capital Structure
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Sample Questions
Q1) George transfers cash of $150,000 to Finch Corporation, a newly formed corporation, for 100% of the stock in Finch worth $80,000 and debt in the amount of $70,000, payable in equal annual installments of $7,000 plus interest at the rate of 9% per annum. In the first year of operation, Finch has net taxable income of $40,000. If Finch pays George interest of $6,300 and $7,000 principal payment on the note:
A) George has dividend income of $13,300.
B) Finch Corporation does not have a tax deduction with respect to the payment.
C) George has dividend income of $7,000.
D) Finch Corporation has an interest expense deduction of $6,300.
E) None of the above.
Q2) Because services are not considered property under § 351, a taxpayer must report as income the fair market value of stock received for such services.
A)True
B)False
Q3) A long-term note is treated as "boot." Thus, Eve is taxed on the value of the note received.
A)True
B)False
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Chapter 19: Corporations: Distributions Not in Complete
Liquidation
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Sample Questions
Q1) Constructive dividends have no effect on a distributing corporation's E & P. A)True
B)False
Q2) Briefly discuss the rules related to distributions of non-cash property.
Q3) In the current year, Carnation Corporation has a § 179 expense of $20,000. As a result, in the current year, taxable income must be increased by $16,000 to determine current E & P.
A)True
B)False
Q4) When computing E & P, taxable income is not adjusted for § 179 expense. A)True B)False
Q5) Under certain circumstances, a distribution can generate (or add to) a deficit in E & P.
A)True B)False
Q6) Briefly describe the reason a corporation might distribute a property dividend to a shareholder in lieu of a cash distribution. Describe the tax effects of the property distribution on the shareholder and on the corporation.
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Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Q1) Cotinga Corporation is acquiring Petrel Corporation through a "Type C" reorganization by exchanging 20% of its voting stock and $50,000 for all of Petrel's assets (value of $800,000 and basis of $600,000) and liabilities ($100,000). Jerrika owns 48% of Petrel (basis $270,000), and Allen owns the remaining 52% (basis $380,000). They exchange their stock in Petrel for their proportionate shares of the Cotinga stock and cash. What is the value of the Cotinga stock received by Jerrika and Allen? What are the amounts of gains/losses each recognizes due to the reorganization? What is Jerrika's and Allen's basis in the Cotinga stock?
Q2) A tax free corporate reorganization can be utilized to:
A) Transfer assets in a bankruptcy.
B) Resolve management issues by dividing a company into three new companies.
C) Combine four corporations into one.
D) Create a subsidiary.
E) All of the above are possible.
Q3) The basis for the acquiring corporation in the target's assets is increased by any gain recognized by the target.
A)True
B)False
Q4) Discuss the role of letter rulings in corporate reorganizations.
Page 22
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Chapter 21: Partnerships
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Q1) Which of the following statements is correct regarding the manner in which partnership liabilities are reflected in the partners' bases in their partnership interests?
A) Nonrecourse debt is allocated to the partners based on the partners' economic risk of loss.
B) Recourse debt is allocated to the partners according to their profit-sharing ratios.
C) An increase in partnership debts results in a decrease in the partners' bases in the partnership interest.
D) A decrease in partnership debt is treated as a distribution from the partnership to the partner and reduces the partner's basis in the partnership interest.
E) Partnership debt is not reflected in the partners' bases in their partnership interests.
Q2) Syndication costs arise when partnership interests are being marketed to investors. These costs cannot be amortized or deducted.
A)True
B)False
Q3) Startup costs
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23
Chapter 22: S Corporations
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Q1) If any entity electing S status is currently a C corporation, NOL carryovers from prior years generally_________________ be used in an S corporation year.
Q2) An S corporation is limited to a theoretical maximum of _____________ shareholders.
Q3) An S corporation can claim a deduction for its NOL amounts.
A)True B)False
Q4) Where the S corporation rules are silent, C corporation provisions apply.
A)True B)False
Q5) An S corporation is subject to the following tax(es).
A) Corporate income tax (§ 11).
B) Built-in gains tax.
C) Alternative minimum tax.
D) None of the above apply to S corporations.
Q6) As with partnerships, the income, deductions, and tax credits of an S corporation ____________ to the shareholders annually.
Q7) Non-separately computed loss ______________ (increases, reduces) a S shareholder's stock basis.
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Chapter 23: Exempt Entities
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Sample Questions
Q1) Bingo games
Q2) The League of Women Voters is a § 501(c)(3) organization.
A)True
B)False
Q3) The Jimenez Group, a private foundation, has been found guilty of self-dealing. To minimize its Federal excise taxes from this activity, Jimenez should:
A) Surrender its tax-exempt status.
B) Reorganize as a C corporation.
C) Pay the second-level excise tax immediately.
D) Undo ("correct") the violation immediately.
Q4) Are organizations that qualify for exempt organization status completely exempt from Federal income taxation?
Q5) Describe how an exempt organization can be eligible to make lobbying expenditures without losing its tax exemption.
Q6) All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return).
A)True B)False
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Chapter 24: Multistate Corporate Taxation
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Q1) Prescription drugs and medicines purchased by a consumer.
Q2) Almost all of the states assess some form of consumer-level sales/use tax.
A)True
B)False
Q3) Typically exempt from the sales/use tax base is the purchase of lumber by a do-it-yourself homeowner, when she builds a deck onto her patio. This exemption is known as the "homestead rule."
A)True
B)False
Q4) A(n) ________________ business operates in concert with its affiliated companies. As a result, the affiliates' data are included in the parent's apportionment computations.
Q5) All of the U.S. states use an apportionment formula based on the sales, property, and payroll factors.
A)True
B)False
Q6) Anders, a local business, wants your help in making a decision about a large capital investment. To assist your client, list several tax and non-tax implications of the decision.
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Chapter 25: Taxation of International Transactions
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Q1) A domestic corporation is one whose assets are primarily located in the U.S. For this purpose, the primarily located test (greater than 50%) applies.
A)True
B)False
Q2) GoldCo, a U.S. corporation, incorporates its foreign branch in a § 351 exchange, creating GreenCo, a wholly owned foreign corporation. GoldCo transfers $200 in inventory (basis = $50) and $900 in land (basis = $950) to GreenCo. GreenCo uses these assets in carrying on a trade or business outside the U.S. What gain or loss, if any, does GoldCo recognize as a result of this transaction?
A) ($50)
B) $0
C) $100
D) $150
Q3) Gains on the sale of U.S. real property held directly or indirectly through U.S. stock ownership by NRAs and foreign corporations are subject to tax at capital gains rates under FIRPTA.
A)True
B)False
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Chapter 26: Tax Practice and Ethics
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) Specific factors that are used in selecting tax returns for audit, and the weights for such factors, are not released to the public. Summarize the public information about tax audit selection? how might a tax return's chances of audit increase above national norms?
Q2) James can state "the tax law confused me" to avoid a tax penalty for:
A) Negligence.
B) Underpayment of estimated taxes
C) Civil tax fraud.
D) Criminal tax fraud.
Q3) Failure to pay a tax that is due.
Q4) Compute the failure to pay and failure to file penalties for John, who filed his 2018 income tax return on December 14, 2019, paying the $10,000 amount due. On April 1, 2019, John submitted a six-month extension of time in which to file his return? he paid no tax with the extension request. He has no reasonable cause for failing to file his return by October 15, or for failing to pay the tax that was due on April 15, 2019. John's failure to comply with the tax laws was not fraudulent.
Q5) A privilege of ________________ exists between certain types of tax preparers and the client as to tax advice rendered.
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Chapter 27: The Federal Gift and Estate Taxes
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) In which of the following independent situations has Trent made a gift?
A) Trent established an irrevocable trust, income payable to himself for life and, upon his death, remainder to his children.
B) Trent dies owning a U.S. savings bond with ownership listed as: "Trent, payable to Sue on Trent's death." Sue redeems the bond.
C) Trent sends $25,000 to Alice's oral surgeon in payment of her dental implants. Alice is Trent's sister and does not qualify as his dependent.
D) Trent pays Eva $800,000 in a property settlement of her marital rights. One month later, Trent and Eva are divorced.
Q2) In his will, Hernando provides for $50,000 to go to the Madrid, Spain, school system. Because it is a foreign charity, the bequest will not qualify as a charitable deduction for estate tax purposes.
A)True
B)False
Q3) Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Nadine predeceases Horace.
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Chapter 28: Income Taxation of Trusts and Estates
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) Income beneficiary Molly wants to receive all of the municipal bond interest income of the Brenner Trust. A special allocation of this sort must be supported by a non-tax
Q2) Under IRS regulations, the decedent's estate must terminate within four years of the date of death, so as to minimize income-shifting techniques.
A)True
B)False
Q3) A gift to charity from its 2017 income is deductible on an estate's Form 1041 if it is made by the end of the________________(2017, 2018) tax year.
Q4) Ellie Inc., a calendar-year C corporation, wants to make a gift to a charity that is deductible on its year 1 Form 1120. The gift must be made by Ellie:
A) During year 1.
B) During year 1 or 2.
C) On or before April 15, year 2.
D) On or before September 30, year 2.
Q5) The entity typically can choose any fiscal tax year.
Q6) The entity has a legal identity separate from its beneficiaries.
Q7) A decedent created the entity.
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