Identify Which of the Following Statements Is True
Identify which of the following statements is true.
A)The credit for taxes paid on prior transfers does not reduce the impact of property being taxed in more than one estate in quick succession.
B)The deduction for state death taxes is not limited.
C)An estate is not entitled to a credit for foreign death taxes paid on property located in a foreign country and included in the gross estate.
D)All of the above are false.
Lou dies on April 12,2011.All of Lou's property passed to Paula,his daughter.Paula dies on January 15,2013.Both Lou's and Paula's estates pay federal estate taxes.Lou's estate tax was $350,000.How much can Paula's estate claim for a credit for tax on prior transfers?
Joe dies late in 2011 and his estate is subject to an estate tax of $2 million.He leaves all of his assets to his daughter,Claudia.Claudia dies in early 2013.Which of the following statements is correct?
A)Claudia's estate receives no credit or deduction for the tax paid by Joe's estate.
B)Claudia's estate receives a credit for $1,000,000 of Joe's estate tax.
C)Claudia's estate receives a credit for $2,000,000 of Joe's estate tax.
D)Claudia's estate receives a deduction for $2,000,000 of Joe's estate tax.
Betty dies on February 20,2013.Her estate consisted of the following assets,all valued as of her date of death: What is Betty's gross estate?