1. How do state estate or death tax payments affect the estate tax returns?
a. the amount of tax paid is excluded from the gross estate
b. the amount of tax paid is a deduction from the gross estate
c. the amount paid is a credit against the estate tax
d. they do not affect the estate tax return.
2. The distributable net income (DNI) for the Sampson estate is $20,000 including $3,000 of adjusted tax exempt interest income. If the executor distributes $8,000 to the beneficiaries in a year other than the final year, what amount may be taken as a distribution deduction?
a. $6,800 b. $8,000 c. $17,000 d. $20,000.