American College Exam HS330 Topic 4 Question 102 Discussion

Actual exam question for American College's HS330 exam

Question #: 102
Topic #: 4

All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:

AA life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.

BThe amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.

CAn estate may deduct the value of the remainder interest in a charitable remainder trust.

DThe amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.

Show Suggested Answer

Suggested Answer: D

by Harley at Oct 18, 2024, 05:15 AM

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Almeta

24 days ago

A life insurance policy to charity? Bold move, Cotton. Let's see if it pays off (pun intended).

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Leontine

29 days ago

Reducing the deduction by taxes and administrative expenses? That's just adding insult to injury, if you ask me.

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Ngoc

10 days ago

C) An estate may deduct the value of the remainder interest in a charitable remainder trust.

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Wei

11 days ago

B) The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.

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Lenora

18 days ago

A) A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.

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Britt

1 months ago

Hmm, the remainder interest in a charitable remainder trust, huh? Sounds like a sneaky way to get a deduction. I'm on to you, IRS!

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Janessa

17 days ago

User 3: Don't forget about the limit on the deduction amount!

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Chaya

24 days ago

User 2: I know, especially with the rules about taxes and expenses.

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Providencia

26 days ago

User 1: Yeah, that charitable deduction can be tricky.

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Lino

1 months ago

I disagree, I believe the answer is D.

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Kiley

1 months ago

I think the answer is A.

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Glory

2 months ago

Ah, the good old 50% adjusted gross estate limit. Gotta love those pesky tax rules, am I right?

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Virgina

18 days ago

D) The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.

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Teresita

19 days ago

C) An estate may deduct the value of the remainder interest in a charitable remainder trust.

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Martin

20 days ago

B) The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.

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Pansy

1 months ago

A) A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.

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Jani

2 months ago

Wait, so a life insurance policy assigned to charity less than 3 years before death doesn't qualify? That's a bit of a bummer, isn't it?

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Belen

28 days ago

User 3: That's true, and the charitable deduction can't exceed 50 percent of the decedent's adjusted gross estate.

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Matilda

1 months ago

User 2: I know, but at least the estate can deduct the value of the remainder interest in a charitable remainder trust.

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Noah

1 months ago

Yeah, it is a bummer that the life insurance policy assigned to charity doesn't qualify for a deduction.

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