Questions from Federal Taxation

Q: Elizabeth, a widow since 2000, made taxable gifts of $

Elizabeth, a widow since 2000, made taxable gifts of $3 million in 2016 and $4 million in 2017. She paid no gift tax on the 2016 transfer. On what amount is the Federal gift tax computed for the 2017...

Q: During an interview with an IRS official on Dateline, the interviewer

During an interview with an IRS official on Dateline, the interviewer asks, “So how do you decide which Forms 1040 get audited and which do not?” How should the IRS official respond, taking into accou...

Q: In 2013 and with $200,000, Alice purchases a

In 2013 and with $200,000, Alice purchases a CD at State Bank listing title as follows: “Alice, payable on proof of death to Clark.” Alice dies in 2018, and Clark (Alice’s nephew) redeems the CD (now...

Q: In 2017, Christian wants to transfer as much as possible to

In 2017, Christian wants to transfer as much as possible to his four adult married children (including spouses) and eight minor grandchildren without using any unified transfer tax credit. a. How much...

Q: In 2017, Noah and Sophia want to make a maximum contribution

In 2017, Noah and Sophia want to make a maximum contribution to their state’s qualified tuition program (Code § 529 plan) on behalf of their minor granddaughter, Amanda, without exceeding the annual F...

Q: At his death, Andrew was a participant in his employer’s contributory

At his death, Andrew was a participant in his employer’s contributory qualified pension plan. His account reflects the following: Employer’s contribution……………………….$1,000,000 Andrew’s contribution…………...

Q: In 2001, Mason buys real estate for $1.5

In 2001, Mason buys real estate for $1.5 million and lists ownership as follows: “Mason and Dana, joint tenants with the right of survivorship.” Mason dies first, when the real estate is valued at $2...

Q: During the year, Rajeev makes the following transfers: •

During the year, Rajeev makes the following transfers: • $1,000 to his mayor’s reelection campaign. • $21,000 to his aunt, Ava, to reimburse her for what she paid the hospital for her gallbladder oper...

Q: Donald dies this year, and under his will, a trust

Donald dies this year, and under his will, a trust is created in the amount of $6 million with the following provisions: life estate to Cindy (Donald’s wife) and remainder to their children. His will...

Q: Included in Mary’s gross estate are the following assets:

Included in Mary’s gross estate are the following assets: a. How much is included in her gross estate if the alternate valuation date is elected? b. Suppose all of Maryâ€...