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WMCP 362 QUESTIONS WITH COMPLETE ANSWERS.
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WMCP 362 QUESTIONS WITH COMPLETE ANSWERS.
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WMCP 362 QUESTIONS WITHCOMPLETE ANSWERS
If ffA ffpartner ffin ffa fflimited ffpartnership ffcommits ffan ffact ffof ffnegligence ffassociated
ffwith ffthe ffpartnership, ffwhat ffis ffthe ffother ffpartners' ffliability? ff- ffAnswerAll ffgeneral
ffpartners ffhave ffunlimited ffliability
Tax fftreatment fffor ffintentionally ffdefective fftrust ff- ffAnswerthe ffgrantor ffis ffrequired ffto
ffpay ffthe ffincome fftax ffon ffthe fftrust ffearnings ffbecause ffthe fftrust ffis ffnot ffa ffseparate
fftax ffpayer.
Which ffof ffthe fffollowing fftrusts ffis fflikely ffto ffbe ffcreated ffsolely fffor fffederal ffwealth
fftransfer fftax ffpurposes? ff- ffAnswerA ffgrantor ffretained ffannuity fftrust ff(GRAT)
What ffare ffthe fftax ffdeductions ffof ffa ffcharitable fflead fftrust? ff- ffAnswerupfront ffincome
fftax ffdeduction ffbut ffno fffuture fftax ffdeductions ffwill ffbe ffavailable
What ffis ffthe fftaxpayer's ffdeduction fffor ffcharitable ffremainder fftrust? ff- ffAnswerThe
ffdeductible ffamount ffis ffthe ffactuarial ffvalue ffof ffthe ffremainder ffpassing ffto ffthe
ffcharitable ffbeneficiary; ffdetermined ffat ffthe fftime ffthe fftrust ffis fffunded
How ffis ffthe fftax ffdeduction ffcalculated fffor ffa ffcharitable ffremainder fftrust? ff-
ffAnswerThe fftax ffdeduction ffis ffdetermined ffat ffthe fftime ffthe fftrust ffis fffunded ffand
ffdepends ffon ffactuarial ffcalculations ffthat ffinclude ffthe ffsize ffof ffthe ffannuity ffor ffunitrust,
ffthe ffduration ffof ffthe fftrust, ffand ffIRS-provided ffactuarial fffactors fffor ffinterest ffrate ffand
ffmortality.
When ffdoes ffthe ffcharity ffselection ffhave ffto fftake ffplace ffwith ffa ffcharitable fftrust ffand
ffcan ffyou ffmake ffchanges? ff- ffAnswermajor ffadvantage ffof ffa ffcharitable fftrust ffis ffthat
ffthe ffdonor ffcan ffdefer ffselection ffof ffthe ffcharity ffor ffmake ffchanges ffin ffthe ffcharitable
ffbeneficiary ffdesignation ffin ffthe fffuture
When ffis ffa ffcharitable fftrust ffparticularly ffeffective? ff- ffAnswerwhen ffthe ffdonor ffhas
ffsubstantial ffhighly ffappreciated ffcapital ffassets ffto ffcontribute; ffcreates ffupfront
ffimmediate ffincome, ffgift, ffand ffestate fftax ffdeduction
, What ffare ffthe fffunding ffdifferences ffbetween ffa ffDAF ffand ffa ffprivate fffoundation? ff-
ffAnswerThe ffamount fffor ffa ffDAF ffcan ffbe ffas fflittle ffas ff$5,000; ffprivate fffoundation ffis
ffusually ffmillions
How ffis ffpublicly fftraded ffstock ffor ffcash ffdeducted ffwhen ffbeing fftransferred ffto ffa
ffprivate fffoundation? ff- ffAnswerCash ffand ffpublicly fftraded ffstock ffcan ffbe fftransferred
ffto ffa ffprivate fffoundation, ffand ffthe fftaxpayer ffmay fftake ffa ffdeduction ffat fffair ffmarket
ffvalue
When ffwould ffa ffbusiness ffowner ffincur ffincome fftax ffin ffa fftaxable ffsale? ff-
ffAnswerunincorporated ffentities fffor ffthe ffsale ffof ffcertain ffbusiness ffassets, ffsuch ffas
ffinventory ffand ffreceivables
What ffhappens ffwhen ffa ffbusiness ffowner ffdies ffduring ffthe ffinstallment ffterm ffof ffa
ffbusiness ffsale? ff- ffAnswerthe fffuture ffpayments ffremaining ffin ffthe ffinstallment ffterm
ffwill ffbe ffincluded ffand ffhis ffnet ffworth ffwill ffcause ffhim ffto ffpay fffederal ffestate fftax
What ffis ffa ffgross ffprofit ffmargin? ff- ffAnswerThe ffratio ffthat ffwould ffconvey ffhow ffmuch
ffit ffcosts ffto ffmanufacture ffan ffitem ffcompared ffto ffeach ffdollar ffof ffrevenue ffthe ffitem
ffgenerated
What ffis ffcost ffof ffgoods ffsold? ff- ffAnswerconveys ffthe ffexpense ffto ffmanufacture ffa
ffproduct, ffnot ffa ffratio
What ffis ffa ffcurrent ffratio? ff- ffAnswerA ffratio ffthat ffcould ffindicate ffhow ffcapable ffa
ffbusiness ffwill ffbe ffin ffgenerating ffcash ffto ffpay ffits ffdebts ffwithin ffthe ffnext ff12 ffmonths
What ffis ffthe ffdifference ffbetween ffIncentive ffStock ffOptions ff(ISO) ffand ffnonstatuary
ffstock ffoptions ff(nso)? ff- ffAnswerstock ffacquired ffthrough ffan ffISO ffmust ffbe ffheld fffor ffa
ffperiod ffof fftime ffequaling fftwo ffyears fffrom ffthe ffinitial ffgranting ffof ffthe ffISO ffand ffone
ffyear fffrom ffthe ffactual ffacquisition. ffStock ffacquired ffthrough ffa ffnonstatutory ffstock
ffoption ffmerely ffneeds ffto ffbe ffheld ffone ffyear fffrom ffthe ffactual ffacquisition.
What ffis ffAn ffestate ffplanning ffadvantage fffor ffmarried ffspouses ffcompared ffto
ffunmarried ffpartners ffpertaining ffto ffd=federal ffexemption? ff- ffAnswersurviving ffspouse
ffmay ffutilize ffthe ffunused fffederal ffexemption ffamount ffremaining fffrom ffthe ffdeceased
ffspouse
What ffis ffthe ffdifference ffbetween ffthe fffederal ffgift fftax ffand fffederal ffestate fftax? ff-
ffAnswera ffcharitable ffgift ffmade ffduring fflife ffallows ffthe ffdonor ffto fftake ffan ffincome fftax
ffdeduction, ffwhile ffa ffcharitable fftransfer fffrom ffan ffestate ffdoes ffnot.
What ffis ffa ffway ffto ffuse ffgifting ffto ffreduce ffthe ffdonor's fftax ffburden? ff- ffAnswerreduce
ffan ffindividual's fftaxable ffestate ffby ffgifting fftaxable ffproperty ffto fffamily ffand fffriends
ffover fftime
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