1|Page
CRPC PRACTICE EXAM AND STUDYGUIDE
NEWEST 2025 COMPLETE ALL 400 QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
EXPLANATIONS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Gift splitting - .....ANSWER ...✔✔ Allows a married
couple to double their allowable annual exclusions is
only allowed for married couples
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
,2|Page
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
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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
, 4|Page
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
CRPC PRACTICE EXAM AND STUDYGUIDE
NEWEST 2025 COMPLETE ALL 400 QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
EXPLANATIONS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Gift splitting - .....ANSWER ...✔✔ Allows a married
couple to double their allowable annual exclusions is
only allowed for married couples
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
,2|Page
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
,3|Page
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
, 4|Page
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
