1. Which of the following statements is accurate?
a. Any taxable gift made by decedent within three years prior to death is includible in the decedent’s gross estate.
b. The alternate valuation date for gift tax purposes is six months after the date of the transfer.
c. There is an estate tax credit available to the donee/decedent’s estate for gift taxes paid by a donor where the donee dies within two years after the date of the gift.
d. There is no gift tax credit available to the donor for gifts received by the donor from the donee within the prior two years.
2. Jack died on July 2, 2016. At his death he had a brokerage account with $2,000,000 worth of stock of a publicly traded company that had purchased his company from him some years ago. The purchase price of his company was $1,000,000. None of the publicly traded stock has been sold since Jack’s death. The brokerage account is a transfer on death account and Jack’s daughter, Jill, is the beneficiary. The balance of Jack’s assets of $5,000,000 pass outright to Jack’s wife, Hillie, under Jack’s will, and Jack had not previously used any portion of his applicable exclusion amount. What is Jill’s basis in the stock publicly traded stock?
a. $1,000,000.
b. $2,000,000.
c. $5,000,000.
d. We do not have sufficient information to make that determination.