Questions from Federal Taxation

Q: At the time of Emile’s death, he was a joint tenant

At the time of Emile’s death, he was a joint tenant with Colette in a parcel of real estate. With regard to the inclusion of the realty in Emile’s gross estate, comment on the following independent as...

Q: With regard to “life insurance” in the context of the

With regard to “life insurance” in the context of the Federal estate tax, comment on the following. a. What the term includes (i.e., types of policies). b. The meaning of “incidents of ownership.” c....

Q: Three unmarried and childless sisters live together. All are of advanced

Three unmarried and childless sisters live together. All are of advanced age and in poor health, and each owns a significant amount of wealth. Each has a will that passes her property to her surviving...

Q: You overhear Matheus say, “I am so glad to be

You overhear Matheus say, “I am so glad to be divorced from my cheating wife Larissa. She keeps two sets of books in her design business, and I wish the IRS would find out about it.” Is Matheus a cand...

Q: An excise tax is a tax on the transfer of property.

An excise tax is a tax on the transfer of property. In the case of the Federal unified transfer tax, the excise tax imposes a tax when assets pass to another individual through lifetime gifts or amoun...

Q: Felipe will incur a $1 million Federal transfer tax when he

Felipe will incur a $1 million Federal transfer tax when he passes a plot of land to Barbara, an unrelated friend. Felipe’s after-tax rate of return on his real estate investments is 3%. Compute the p...

Q: In no more than three PowerPoint slides, indicate how the time

In no more than three PowerPoint slides, indicate how the time value of money affects the application of the Federal unified transfer taxes. Prepare your slides for a 45-minute presentation at your sc...

Q: Regarding the formula for the Federal gift tax (see Concept Summary

Regarding the formula for the Federal gift tax (see Concept Summary 27.1), comment on the following observations. a. The annual exclusion is adjusted each year for inflation. b. The charitable and mar...

Q: Bernice dies and, under a will, passes real estate to

Bernice dies and, under a will, passes real estate to her surviving husband. The real estate is subject to a mortgage. For estate tax purposes, how is any marital deduction determined? Can Bernice’s e...

Q: Kim, a wealthy Korean national, is advised by his physicians

Kim, a wealthy Korean national, is advised by his physicians to have an operation performed at the Mayo Clinic. Kim is hesitant to come to the United States because of the possible tax consequences. I...