CHAPTER 1: Successions and Transfer Taxes (Multiple Choice) Flashcards
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. Classified as national tax
d. None of the above
d. None of the above
The object of estate tax is the:
a. Right to transmit
b. Decedent
c. Properties of the decedent
d. Beneficiaries
a. Right to transmit
Justification for the imposition of transfer tax.
a. Redistribution of wealth theory
b. Benefit received theory
c. State partneship theory
d. All of the above
d. All of the above
Mortis causa transfer of property is effected:
a. when the property is received by the heir
b. When the court awarded the ownership of property to a particular heir.
c. upon the death of the decedent
d. upon payment of estate tax
c. upon the death of the decedent
The tax imposed on the transfer of property without consideration between two or more persons who are living at the time the transfer is made.
a. Estate tax
b. Business tax
c. Donor’s tax
d. Personal tax
c. Donor’s tax
Statement 1: Cancellation of existing debt as payment for services rendered by the debtor to the creditor is a gratuitous transfer.
Statement 2: A sale is a form of transfer transaction that requires payment of transfer tax.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true
a. Statements 1 and 2 are false
Statement 1: A sale on an installment basis is considered an onerous transfer
Statement 2: A gift out of love to a former girlfriend is an onerous transfer
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true
b. Statement 1 is true but statement 2 is false
The object of the estate tax is the:
a. Right to transmit
b. Decedent
c. Properties of the decedent
d. Beneficiaries
a. Right to transmit
