CRPC COMPREHENSIVE EXAM QUESTIONS
AND CORRECT ANSWERS STUDY GUIDE
●● Ownership limited to spouses only
Answer: Joint tenancy tenancy by the entirety community property
●● Grantor retained interest Trust Grit
Answer: Grantor can receive all income earned by the trust
●● Qualified terminable interest Property Trust Q-tip
Answer: Income of a Q-tip goes to the grantor's spouse
●● Charitable lead Trust CLT
Answer: The income goes to charity
●● Power of appointment trust POA
Answer: Income goes to the grantor's spouse
●● Valuation date for gifts
Answer: The date on which the transfer is completed
●● Gross estate
,Answer: Includes all the property that is subject to the federal estate tax
whether or not owned by the decedent and whether or not included in the
the probate or taxable estate
●● Taxation of reinvestment of ordinary dividends
Answer: Qualified dividends are subject to the same tax rates applicable
to long-term capital gains
●● The basis for charitable contribution deduction for stock
Answer: Based on the current fair market value of the stock
●● Taxation of substitute payments in lieu of a dividend
Answer: Substitute payments in lieu of a dividend are not subject to
preferential treatment and are treated as ordinary income
●● How does a stock dividend affect basis
Answer: The basis is reduced to provide basis for shares are received as
a stock dividend
●● Net capital loss amount
Answer: $3,000 per year are deductible
●● Taxation of qualified dividends
,Answer: Dividends are taxed at 15% or 20% if the dividends fall into the
39.6% bracket
●● Text treatment for a shareholder participating in common stock
dividend reinvestment program
Answer: The shareholder is treated as if he received a cash dividend
equal to the fair market value of the shares purchased under the plan
●● When is earned income taxed
Answer: It is taxed in the year when the check was received
●● Medical expenses and AMT
Answer: Most that are deducted are allowed for AMT purposes 10% of
AGI
●● Bargain element on exercise of an incentive stock option and AMT
Answer: Included as a preference item for AMT
●● Private activity municipal bonds and AMT
Answer: Interest from private activity Muni bonds is an AMT preference
item except for bonds issued in 2009 and 2010
●● Home mortgage interest and AMT
, Answer: Home mortgage interest is allowed for regular and AMT
●● Adjusted gross income
Answer: Income remaining after subtracting the adjustments to income
●● Domestic Partners transfer wealth to the other vs legal spouse
Answer: Governor domestic partner cannot take a marital deduction in
excess of the gift tax annual exclusion for the transfer while a donor
spouse could
●● If a domestic partner is appointed as conservator or Guardian
Answer: The individual should make his or her desire to have the
domestic partner appointed by executing written documents approved by
state law as intestacy laws typically follow the bloodline
●● Per year 4 retirement benefit increase over full retirement age
Answer: 8%
●● Qlac
Answer: Suitable for those who are healthy and have a family history of
longevity and those entering retirement with Social Security as their
only source of guaranteed income
●● Bucket approach to withdrawals from retirement savings
AND CORRECT ANSWERS STUDY GUIDE
●● Ownership limited to spouses only
Answer: Joint tenancy tenancy by the entirety community property
●● Grantor retained interest Trust Grit
Answer: Grantor can receive all income earned by the trust
●● Qualified terminable interest Property Trust Q-tip
Answer: Income of a Q-tip goes to the grantor's spouse
●● Charitable lead Trust CLT
Answer: The income goes to charity
●● Power of appointment trust POA
Answer: Income goes to the grantor's spouse
●● Valuation date for gifts
Answer: The date on which the transfer is completed
●● Gross estate
,Answer: Includes all the property that is subject to the federal estate tax
whether or not owned by the decedent and whether or not included in the
the probate or taxable estate
●● Taxation of reinvestment of ordinary dividends
Answer: Qualified dividends are subject to the same tax rates applicable
to long-term capital gains
●● The basis for charitable contribution deduction for stock
Answer: Based on the current fair market value of the stock
●● Taxation of substitute payments in lieu of a dividend
Answer: Substitute payments in lieu of a dividend are not subject to
preferential treatment and are treated as ordinary income
●● How does a stock dividend affect basis
Answer: The basis is reduced to provide basis for shares are received as
a stock dividend
●● Net capital loss amount
Answer: $3,000 per year are deductible
●● Taxation of qualified dividends
,Answer: Dividends are taxed at 15% or 20% if the dividends fall into the
39.6% bracket
●● Text treatment for a shareholder participating in common stock
dividend reinvestment program
Answer: The shareholder is treated as if he received a cash dividend
equal to the fair market value of the shares purchased under the plan
●● When is earned income taxed
Answer: It is taxed in the year when the check was received
●● Medical expenses and AMT
Answer: Most that are deducted are allowed for AMT purposes 10% of
AGI
●● Bargain element on exercise of an incentive stock option and AMT
Answer: Included as a preference item for AMT
●● Private activity municipal bonds and AMT
Answer: Interest from private activity Muni bonds is an AMT preference
item except for bonds issued in 2009 and 2010
●● Home mortgage interest and AMT
, Answer: Home mortgage interest is allowed for regular and AMT
●● Adjusted gross income
Answer: Income remaining after subtracting the adjustments to income
●● Domestic Partners transfer wealth to the other vs legal spouse
Answer: Governor domestic partner cannot take a marital deduction in
excess of the gift tax annual exclusion for the transfer while a donor
spouse could
●● If a domestic partner is appointed as conservator or Guardian
Answer: The individual should make his or her desire to have the
domestic partner appointed by executing written documents approved by
state law as intestacy laws typically follow the bloodline
●● Per year 4 retirement benefit increase over full retirement age
Answer: 8%
●● Qlac
Answer: Suitable for those who are healthy and have a family history of
longevity and those entering retirement with Social Security as their
only source of guaranteed income
●● Bucket approach to withdrawals from retirement savings
