Question

Bessie, a widow, makes cash gifts to her two married children (including their spouses) and to her three grandchildren. What is the maximum amount Bessie can give for calendar year 2017 without using her unified transfer tax credit?

	a.	$14,000
	b.	$28,000
	c.	$56,000
	d.	$70,000
	e.	$98,000

3 points   

QUESTION 4

For tax year 2017, Bob filed his tax return on April 25, 2018. Assuming Bob is a calendar year individual with no fraud or substantial omission involved, what is the statute of limitation on Bob’s 2017 tax return?

(Note: 2017 tax returns due date was 4/17/2018)

	a.	12/31/2020
	b.	4/15/2021
	c.	4/17/2021
	d.	4/25/2021
	e.	None of these

Answer 1

Answer: e. $98,000

2 children + 2 spouse + 3 grand children = 7 donees

$14000 x 7 = $98,000

Answer: d. 4/25/2021

The statute of limitation shall be calculated as follows:

3 years from,

- the due date of filing return of income or

-the actual date of filing return of income,

which ever is later

The due date of return is 15th April 2018 and the actual date of fililng is 25th April 2018

Thus 3 years shall be calculated from 25th April 2018. Thus the statute of limitation shall be 25th April 2021.