Specialized Returns for Individuals — Enrolled Agent — SEE Part 1 (Individuals) Practice Test

This Enrolled Agent — SEE Part 1 (Individuals) Specialized Returns for Individuals practice set has 70 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Specialized Returns for Individuals bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.

1. Under IRC §2033, which of the following is included in a decedent's gross estate for federal estate-tax purposes?

   • The value of all property, real or personal, in which the decedent had a beneficial interest at the time of death — Correct answer
   • Only property that passes through the decedent's probate estate under a will
   • Only real estate located in the decedent's state of residence
   • Only property the decedent acquired within the last three years of life

   Explanation: IRC §2033 includes in the gross estate the value of all property (real or personal, tangible or intangible) in which the decedent had an interest at death. The gross estate is not limited to probate property — it also captures non-probate interests brought in by §§2034–2046.

   Handbook: Specialized Returns for Individuals — Gross Estate: Property Owned at Death (IRC §2033)

2. Property included in a decedent's gross estate is generally valued at what amount?

   • Its fair market value on the date of the decedent's death — Correct answer
   • The decedent's original cost (adjusted) basis in the property
   • The property's assessed value for local property-tax purposes
   • The price the decedent paid, reduced by depreciation claimed

   Explanation: Under IRC §2031, the gross estate is measured by the fair market value of the included property on the date of death (unless the executor elects the alternate valuation date under IRC §2032). Estate tax is a transfer tax on value, not on cost or basis.

   Handbook: Specialized Returns for Individuals — Gross Estate: Valuation Date

3. During life, a decedent transferred assets into a revocable living trust, keeping the power to amend or revoke it at any time. How are those trust assets treated for federal estate-tax purposes?

   • They are included in the decedent's gross estate under IRC §2038 because of the retained power to revoke — Correct answer
   • They are excluded because assets in any trust avoid the estate tax
   • They are excluded because a completed transfer to a trust removes them from the estate
   • They are included only if the trust generated income during the year of death

   Explanation: IRC §2038 pulls back into the gross estate property transferred during life over which the decedent retained the power to alter, amend, revoke, or terminate the transfer. A revocable living trust does NOT reduce the gross estate for that reason (though it can still avoid probate).

   Handbook: Specialized Returns for Individuals — Gross Estate: Revocable Transfers (IRC §2038)