Questions from Federal Taxation

Q: Compare the tax treatment of administration expenses with that of the decedent’s

Compare the tax treatment of administration expenses with that of the decedent’s debts.

Q: Judy died and was survived by her husband, Jason,

Judy died and was survived by her husband, Jason, who received the following interests as a result of his wife’s death. Does Judy’s estate receive a marital deduction for them? Explain. a. $400,000...

Q: Compare the credits available for estate tax purposes with the credits available

Compare the credits available for estate tax purposes with the credits available for gift tax purposes. What differences exist?

Q: Assume that Larry is wealthier than Jane, his wife, and

Assume that Larry is wealthier than Jane, his wife, and that he is likely to die before her. From an overall tax standpoint (considering transfer taxes and income taxes), is it preferable for Larry to...

Q: Explain which of the following assets you would recommend that Bala transfer

Explain which of the following assets you would recommend that Bala transfer during his lifetime (more than one asset may be suggested): a. Life insurance on his life b. Cash c. Corporate bonds (ass...

Q: Refer to Problem C:13-24. Explain the negative

Refer to Problem C:13-24. Explain the negative tax considerations (if any) with respect to Bala’s making gifts of the assets that you recommended. From problem 24: Explain which of the following asset...

Q: Lisa has a $25,000 basis in her partnership interest

Lisa has a $25,000 basis in her partnership interest before receiving a current distribution of $4,000 cash and land with a $30,000 FMV and a $14,000 basis to the partnership. Assume that any distribu...

Q: From a tax standpoint, describe an advantage a very wealthy married

From a tax standpoint, describe an advantage a very wealthy married person would achieve by disposing of an amount equal to the exemption equivalent (basic exclusion amount) to individuals other than...

Q: Henry Arkin (a widower) is quite elderly and is beginning

Henry Arkin (a widower) is quite elderly and is beginning to engage in some estate planning. His goal is to reduce his transfer taxes. He is considering purchasing land with a high potential for appre...

Q: Annie James died early in 2017. All her property passed subject

Annie James died early in 2017. All her property passed subject to her will, which provides that her surviving husband, Dave James, is to receive all the property outright. Her will further states tha...