Specialized Returns & Estate
Part 1 · 27 study cards · Active recall format
Q1.What is the Foreign Earned Income Exclusion amount for 2025?
Exam wording
$130,000
Q2.Which form reports specified foreign financial assets when the applicable FATCA threshold is met?
Exam wording
Form 8938, Statement of Specified Foreign Financial Assets.
Q3.What account-value threshold generally triggers an FBAR filing?
Exam wording
More than $10,000 in aggregate foreign financial accounts at any time during the calendar year.
Q4.Which form notifies the IRS of the creation or termination of a fiduciary relationship?
Exam wording
Form 56, Notice Concerning Fiduciary Relationship.
Q5.Who is generally responsible for paying gift tax?
Exam wording
The donor.
Q6.Recall the rule for this EA objective in Income And Assets: Foreign pensions and retirement income
Exam wording
Its taxable amount is included in income
Q7.Recall the rule for this EA objective in Specialized Returns For Individuals: Jointly held property
Exam wording
Generally include its full value, subject to the contribution and qualified-joint-interest rules
Q8.Recall the rule for this EA objective in Specialized Returns For Individuals: Gift-splitting
Exam wording
Gift splitting
Q9.Recall the rule for this EA objective in Specialized Returns For Individuals: Annual exclusion
Exam wording
$19,000
Q10.Recall the rule for this EA objective in Specialized Returns For Individuals: Filing requirements (e.g., Form 709)
Exam wording
Form 709
Q11.Recall the rule for this EA objective in Specialized Returns For Individuals: Filing and reporting requirements and due dates (e.g., FBAR, Form 8938, Form 8865, Form 5471, Form 3520)
Exam wording
Form 8938 is filed with the income tax return; FBAR is filed electronically with FinCEN
Q12.Recall the rule for this EA objective in Specialized Returns For Individuals: Potential penalties (e.g., failure to file, underreporting, substantially incomplete, statute of limitations, reduction of tax attributes)
Exam wording
$10,000
Q13.Recall the rule for this EA objective in Specialized Returns For Individuals: Distinctions between FBAR and Form 8938 requirements
Exam wording
Form 8938 is an IRS tax-return attachment, while FBAR is FinCEN Form 114 filed separately
Q14.When must a U.S. person file an FBAR?
Exam wording
when the person has a financial interest in or signature authority over foreign financial accounts and the aggregate value exceeds $10,000 at any time during the calendar year the FBAR is filed with FinCEN, not on the Form 1040 separate Form 8938 thresholds do not replace the FBAR filing duty
Q15.How does Form 8938 relate to the FBAR?
Exam wording
Form 8938 reports specified foreign financial assets to the IRS with the income-tax return when thresholds are met FBAR reports foreign financial accounts to FinCEN filing one form does not satisfy the other when both are required
Q16.When may Form 3520 be required for an individual with foreign connections?
Exam wording
Form 3520 reports certain transactions with foreign trusts and certain large gifts or bequests from foreign persons it is generally filed separately from Form 1040 penalties can apply for failure to timely file complete and accurate international information returns
Q17.What records should a taxpayer keep for foreign-account reporting?
Exam wording
account statements showing maximum values during the year ownership and signature-authority documentation income records needed to report interest and dividends on the tax return copies of any FBAR and Form 8938 filings
Q18.What is the gift-tax annual exclusion?
Exam wording
a donor may exclude gifts of a present interest up to the annual-exclusion amount per donee each year future-interest gifts generally do not qualify gift splitting with a spouse can effectively double the exclusion for a donee when elected
Q19.When is Form 709 generally required?
Exam wording
when gifts to any donee exceed the annual exclusion when the donor elects gift splitting with a spouse when the donor gives a future interest to anyone certain transfers also require reporting even if no tax is due
Q20.What is included in the gross estate for Form 706 purposes?
Exam wording
property in which the decedent had an interest at death certain transfers with retained interests, jointly owned property, annuities, and general powers of appointment life-insurance proceeds receivable by the estate or over which the decedent held incidents of ownership
Q21.What is estate-tax portability?
Exam wording
a surviving spouse may use the deceased spouse's unused exclusion amount if a timely and complete Form 706 elects portability the DSUE amount increases the surviving spouse's applicable exclusion for gift and estate tax portability does not automatically transfer GST exemption
Q22.Part ____ of Schedule B (Form 1040) is completed by taxpayers with financial accounts in foreign countries.
Exam wording
Part III.
Q23.As a general rule, how long should taxpayers keep records related to an FBAR filing (from the due date of the FBAR)?
Exam wording
5 years.
Q24.Bruno, age 71, pays $19,800 of college tuition for his favorite granddaughter, Margaret, age 25, directly to her college. Bruno does not claim his granddaughter as a dependent. Which of the following statements is correct?
Exam wording
The gift is not taxable, and no gift tax return is required.
Q25.Claude dies on May 4, 2025. His assets are valued at $60 million on the date of his death, so a Form 706 needs to be filed for his estate. When is the estate tax return due?
Exam wording
February 4, 2026
Q26.Eileen's aunt gives her a gift of a "future interest" on her estate. Eileen will have full use of the estate after her aunt dies. Which is the correct statement about this gift?
Exam wording
Eileen's aunt cannot use the annual gift tax exclusion for this gift.
Q27.Cash inheritances are generally:
Exam wording
Not taxable to the beneficiary for any amount.
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