Questions from Federal Taxation

Q: In the current year, Louise makes the transfers described below to

In the current year, Louise makes the transfers described below to Lance, her husband, age 47. Assume 4% is the applicable interest rate. What is the amount of her marital deduction, if any, attributa...

Q: Mariel has a $60,000 basis in her partnership interest

Mariel has a $60,000 basis in her partnership interest just before receiving a parcel of land as a liquidating distribution. She has no remaining precontribution gain and will receive no other distri...

Q: Explain the differences between the way the following items are reported by

Explain the differences between the way the following items are reported by a C corporation and an S corporation: a. Ordinary income or loss b. Dividend income c. Capital gains and losses d. Tax-e...

Q: Tien (age 70) transfers a remainder interest in a vacation

Tien (age 70) transfers a remainder interest in a vacation cabin (with a total value of $100,000) to a charitable organization and retains a life estate in the cabin for herself. a. What is the amoun...

Q: In 2017, Homer and his wife, Wilma (residents of

In 2017, Homer and his wife, Wilma (residents of a non–community property state) make the gifts listed below. Homer’s previous taxable gifts consist of $100,000 made in 1975 and $1.4 million made in 1...

Q: In 2017, Henry and his wife, Wendy, made the

In 2017, Henry and his wife, Wendy, made the gifts shown below. All gifts are of present interests. What is Wendy’s gift tax payable for 2017 if the couple elects gift splitting and Wendy’s previous t...

Q: In June 2016, Karen transferred property with a $75,

In June 2016, Karen transferred property with a $75,000 FMV and a $20,000 adjusted basis to Hal, her husband. Hal dies in March 2017; the property has appreciated to $85,000 in value by then. His gros...

Q: Siu is considering giving her son stock in Ace Corporation or Gold

Siu is considering giving her son stock in Ace Corporation or Gold Corporation. Each has a current FMV of $500,000, and each has the same estimated future appreciation rate. Siu’s basis in the Ace sto...

Q: Your manager advises you that clients Mike and Winona Marsh, residents

Your manager advises you that clients Mike and Winona Marsh, residents of Bath, Maine, acquired beachfront property in Maine in 2002 and titled the property in their names as joint tenants with right...

Q: In July of the current year, Horace Hiatt, a widower

In July of the current year, Horace Hiatt, a widower, transferred $14,000 worth of publicly traded stock to an irrevocable trust with Benton National Bank as trustee. He named his granddaughter, Heath...