American College Exam HS330 Topic 1 Question 105 Discussion

Actual exam question for American College's HS330 exam

Question #: 105
Topic #: 1

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 Rashida at Jan 12, 2025, 07:15 AM

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1 months ago

I'm pretty sure the answer is A. A life insurance policy assigned to a charity less than 3 years before the insured's death doesn't qualify for a deduction.

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Melina

8 days ago

User 2: I agree with Melina, B sounds correct.

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Sina

23 days ago

User 1: I think the answer is B. The deduction is reduced by taxes and expenses.

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Orville

2 months ago

I think the answer is A.

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