Questions from Federal Taxation

Q: David owns a 60% interest in the DDD Partnership, a

David owns a 60% interest in the DDD Partnership, a general partnership, which he sells to the two remaining partners—Drew and Dana. The three partners have agreed that David will receive $150,000 in...

Q: Refer to the facts of Problem C:12-36 and

Refer to the facts of Problem C:12-36 and assume the current year is 2017. Emily’s prior gifts are as follows: What is Emily’s 2017 gift tax liability? From proble...

Q: In the current year, Marge (age 67) engages in

In the current year, Marge (age 67) engages in the following transactions. Determine the amount of the completed gift, if any, arising from each of the following events. Assume 4% is the applicable in...

Q: Determine the amount of the completed gift, if any, arising

Determine the amount of the completed gift, if any, arising from each of the following occurrences. a. A parent sells real estate valued at $1.8 million to an adult child, who pays $1 million in cons...

Q: In March 1976, Sue made a taxable gift of $200

In March 1976, Sue made a taxable gift of $200,000. In arriving at the amount of her taxable gift, Sue elected to deduct the $30,000 specific exemption then available. In 2017, Sue makes her next gift...

Q: In June, Tina makes cash gifts of $700,000

In June, Tina makes cash gifts of $700,000 to her husband and $100,000 to the City Art Museum. What are the amounts of the deductions available for these gifts when calculating Tina’s income tax and g...

Q: For each of the following transactions that occur in the current year

For each of the following transactions that occur in the current year, indicate the amount of the annual exclusion available. Explain your answer. a. Tracy creates a trust in the amount of $300,000 f...

Q: During 2017, Will gives $40,000 cash to Will

During 2017, Will gives $40,000 cash to Will, Jr. and a remainder interest in a few acres of land to his friend Suzy. The remainder interest is valued at $32,000. Will and his wife, Helen, elect gift...

Q: In earlier years, neither Hugo nor Wanda, his wife,

In earlier years, neither Hugo nor Wanda, his wife, made any taxable gifts. In 2016, Hugo gave $14,000 cash to each of his nieces, nephews, and grandchildren, 30 persons in total. In 2017, Wanda gives...

Q: Hugh makes the gifts listed below to Winnie, his wife,

Hugh makes the gifts listed below to Winnie, his wife, age 37. What is the amount of the marital deduction, if any, attributable to each? a. Hugh transfers $500,000 to a trust with a bank named as tr...