Which of the following statements is (are)true about the federal estate tax?
I.The gross estate can be reduced by a number of deductions.
II.If the person who died had any ownership interest in a life insurance policy at the time of death,the proceeds are included in the gross estate for federal estate tax purposes.

Question

Quizplus · Accepted Answer

I is true because there are various deductions allowed in calculating the federal estate tax, such as charitable contributions, administrative expenses, and mortgages. 
II is also true because if the deceased owned a life insurance policy on their own life, the death benefit is included in their gross estate for estate tax purposes. However, if the policy is owned by someone else, the death benefit is not included in the gross estate.

Which of the Following Statements Is (Are)true About the Federal