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The Starting Point for the Computation of Federal Estate Tax

Question 3

Multiple Choice

The starting point for the computation of federal estate tax is the gross estate. Which of the following statements is NOT true regarding the computation of the gross estate?


A) The gross estate for tax purposes is often greater than the estate for probate purposes
B) The taxable estate does not include transfers of property made during decedent's lifetime
C) The gross estate for tax purposes also includes certain transfers by the deceased during life in which certain rights are retained by the decedent
D) The taxable estate can be reduced by certain allowable deductions

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