Questions from Federal Taxation

Q: Roy dies and is survived by his wife, Marge. Under

Roy dies and is survived by his wife, Marge. Under Roy’s will, all of his otherwise uncommitted assets pass to Marge. Based on the following property interests, determine the marital deduction allowed...

Q: Under Rowena’s will, Mandy (Rowena’s sister) inherits her property

Under Rowena’s will, Mandy (Rowena’s sister) inherits her property. One year later, Mandy dies. Based on the following independent assumptions, what is Mandy’s credit for the tax on prior transfers? a...

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

In each of the following independent situations, indicate whether the alternate valuation date can be elected. Explain why or why not.

Q: Carl made the following transfers during the current year. What are

Carl made the following transfers during the current year. What are Carl’s taxable gifts for the current year? • Transferred $900,000 in cash and securities to a revocable trust, life estate to himsel...

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

Jesse dies intestate (i.e., without a will) in May 2017. Jesse’s major asset is a tract of land. Under applicable state law, Jesse’s property will pass to Lorena, who is his only child. In December 20...

Q: Indicate whether each of the following statements is true or false.

Indicate whether each of the following statements is true or false. a. The government never pays a taxpayer interest on an overpayment of tax. b. The IRS can compromise on the amount of tax liability...

Q: Using property she inherited, Myrna makes a 2017 gift of $

Using property she inherited, Myrna makes a 2017 gift of $6.2 million to her adult daughter, Doris. Neither Myrna nor her husband, Greg, has made any prior taxable gifts. Determine the gift tax liabil...

Q: In May 2017, Dudley and Eva enter into a property settlement

In May 2017, Dudley and Eva enter into a property settlement preparatory to the dissolution of their marriage. Under the agreement, Dudley is to pay Eva $6 million in satisfaction of her marital right...

Q: Before her death, Lucy entered into the following transactions.

Before her death, Lucy entered into the following transactions. a. Lucy borrowed $600,000 from her brother, Irwin, so that Lucy could start a business. The loan was on open account, and no interest or...

Q: Grace Lang was employed as a waitress at the Pancake House in

Grace Lang was employed as a waitress at the Pancake House in Grand Bay, Alabama. While working the morning shift on March 7, 2009, one of Grace’s customers left her a Florida lottery ticket as a tip....