Questions from Federal Taxation

Q: Regarding the formula for the Federal estate tax comment on the following

Regarding the formula for the Federal estate tax comment on the following. a. The gross estate includes only property interests owned by the decedent at the time of death. b. The gross estate is not t...

Q: As to the alternate valuation date for asset transfers at death,

As to the alternate valuation date for asset transfers at death, comment on the following. a. The justification for the election. b. The main heir prefers the date of death value. c. An estate asset i...

Q: On June 10, Ming states, “I filed my Form

On June 10, Ming states, “I filed my Form 1040 on April 5 and haven’t heard from the IRS since then, so I know I will not be audited!” Evaluate Ming’s assumption.

Q: Gus (age 84) and Belle (age 18) are

Gus (age 84) and Belle (age 18) are married early in the year. Late in the same year, Belle confronts Gus about his failure to transfer to her the considerable amount of property he previously promise...

Q: At a local bank, Jack purchases for $100,000

At a local bank, Jack purchases for $100,000 a five-year CD listing title as follows: “Meredith, payable on death to Briana.” Four years later, Meredith dies. Briana, Meredith’s daughter, then redeems...

Q: Derek dies intestate (i.e., without a will)

Derek dies intestate (i.e., without a will) and is survived by a daughter, Ruth, and a grandson, Ted (Ruth’s son). Derek’s assets include a large portfolio of stocks and bonds and a beach house. Ruth...

Q: Qualified tuition programs under § 529 enjoy significant tax advantages. Describe

Qualified tuition programs under § 529 enjoy significant tax advantages. Describe these advantages with regard to the Federal: a. Income tax. b. Gift tax. c. Estate tax.

Q: Regarding the gift-splitting election, comment on the following.

Regarding the gift-splitting election, comment on the following. a. What it is designed to accomplish. b. How the election is made.

Q: In connection with the filing of a Federal gift tax return,

In connection with the filing of a Federal gift tax return, comment on the following. a. No Federal gift tax is due. b. The gift is between spouses. c. The donor obtained from the IRS an extension of...

Q: In each of the following independent situations, indicate whether the transfer

In each of the following independent situations, indicate whether the transfer is subject to the Federal gift tax. a. Asa contributes to his mayor’s reelection campaign fund. The mayor has promised to...