SOUTH WESTERN FEDERAL TAXATION ACTUAL
EXAM PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Severance Taxes. Answer •Tax on natural resources extracted
•Important revenue source for states rich in natural resources
Example: oil, gas, iron ore, or coal etc
◉ Taxes on Transfers at Death. Answer •Tax on the right to transfer
property or to receive property upon the death of the owner
◉ Classified as an estate tax. Answer if imposed on right to pass
property at death
◉ •Classified as an inheritance tax. Answer If imposed on the right to
receive property from a decedent
◉ Unified Transfer Tax Credit. Answer A unified transfer tax credit
reduces or eliminates the estate tax liability for certain estates.•For 2021,
the credits exempt tax base up to $11,700,000
◉ Types of audits. Answer •Correspondence audit
EXAM PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Severance Taxes. Answer •Tax on natural resources extracted
•Important revenue source for states rich in natural resources
Example: oil, gas, iron ore, or coal etc
◉ Taxes on Transfers at Death. Answer •Tax on the right to transfer
property or to receive property upon the death of the owner
◉ Classified as an estate tax. Answer if imposed on right to pass
property at death
◉ •Classified as an inheritance tax. Answer If imposed on the right to
receive property from a decedent
◉ Unified Transfer Tax Credit. Answer A unified transfer tax credit
reduces or eliminates the estate tax liability for certain estates.•For 2021,
the credits exempt tax base up to $11,700,000
◉ Types of audits. Answer •Correspondence audit
