Question

The applicable exclusion amount from estate tax for 2015 is:

A) $500,000
B) $1,000,000
C) $2,000,000
D) $3,500,000
E) $5,430,000

Answer 1

The correct answer is E) $5,430,000, which was the estate tax exclusion amount for 2015, affecting only estates valued over this amount.

Step-by-step explanation:

The correct answer to the question about the applicable exclusion amount from estate tax for 2015 is E) $5,430,000. The estate tax is a tax imposed on the value of an inheritance. For the year 2015, this tax only affects estates with a value greater than $5.43 million, which means it applies to a very small portion of inheritances, hitting primarily those with high levels of wealth. This exclusion amount is specified by the IRS and has been reported by various sources, including Forbes in an article about estate and gift tax limits.