Questions from Federal Taxation

Q: Will, a bachelor, died in 2017. At that time

Will, a bachelor, died in 2017. At that time, his sole asset was cash of $6 million. Assume no debts or funeral and administration expenses and no charitable bequests. His gift history was as follows:...

Q: Maria Martinez died in 2017, survived by her spouse, Sergio

Maria Martinez died in 2017, survived by her spouse, Sergio, and two adult children. Her gross estate, all of which passed under her will, was valued at $7.2 million. She had Sec. 2053 deductions of $...

Q: Austin & Becker is an electing large partnership. During the current

Austin & Becker is an electing large partnership. During the current year, the partnership has the following income, loss, and deduction items: Ordinary income………………………………………………….$5,200,000 Rental lo...

Q: Giovanni died in 2017 with a gross estate of $6.

Giovanni died in 2017 with a gross estate of $6.9 million and debts of $30,000. He made post-1976 taxable gifts of $100,000, valued at $80,000 when Giovanni died. His estate paid state death taxes of...

Q: P Corporation purchases 100% of S Corporation’s stock for $2

P Corporation purchases 100% of S Corporation’s stock for $2 million on January 1 of the current year. The corporations elect to file a consolidated tax return. During the current year, S reports $350...

Q: Mary died on April 3, 2017. As of this date

Mary died on April 3, 2017. As of this date, Mary’s gross estate was valued at $6.5 million. On October 3, Mary’s gross estate was valued at $5.8 million. The estate neither distributed nor sold any a...

Q: Sue died on May 3, 2017. On October 1,

Sue died on May 3, 2017. On October 1, 2015, Sue gave her son Tom land valued at $7,014,000. Sue applied a unified credit of $2,117,800 against the gift tax due on this transfer. On Sue’s date of deat...

Q: John owns all the stock of Lucas Corporation, an S corporation

John owns all the stock of Lucas Corporation, an S corporation. John’s basis for the 1,000 shares is $130,000. On June 11 of the current year (assume a non-leap year), John gifts 100 shares of stock t...

Q: Twelve years ago, Latoya transferred property to an irrevocable trust with

Twelve years ago, Latoya transferred property to an irrevocable trust with a bank trustee. Latoya named Al to receive the trust income annually for life and Pat or Pat’s estate to receive the remainde...

Q: Ten years ago, Art purchased land for $60,000

Ten years ago, Art purchased land for $60,000 and immediately titled it in the names of Art and Bart, joint tenants with right of survivorship. Bart paid no consideration. In 2017, Art died and was su...