Questions from Federal Taxation

Q: Amelia, a widow, is in the top marginal income tax

Amelia, a widow, is in the top marginal income tax bracket and has considerably more income than she can spend. She is considering creating a trust for the benefit of her adult son Jason but is reluct...

Q: What is the benefit of the 65-day rule?

What is the benefit of the 65-day rule?

Q: a. When are fiduciary income tax returns due? b

a. When are fiduciary income tax returns due? b. Must estates and trusts pay estimated income taxes?

Q: Art Rutter sold an apartment building in May 2017 for a small

Art Rutter sold an apartment building in May 2017 for a small amount of cash and a note payable with payments beginning in 2018. Principal and interest payments are due annually on the note in April o...

Q: For the first five months of its existence (August through December

For the first five months of its existence (August through December 2017), the Estate of Amy Ennis had gross income (net of expenses) of $7,000 per month. For January through July 2018, the executor e...

Q: Raj Kothare funded an irrevocable simple trust in May of last year

Raj Kothare funded an irrevocable simple trust in May of last year. The trust benefits Raj’s son for life and grandson upon the son’s death. One of the assets he transferred to the trust was Webbco st...

Q: A complex trust has taxable income of $29,900 in

A complex trust has taxable income of $29,900 in 2017. The $29,900 includes $5,000 of rental income and $25,000 of taxable interest income, reduced by the $100 personal exemption. The trust makes no d...

Q: Suellen Symmes died on January 15, 2017. Her estate elected

Suellen Symmes died on January 15, 2017. Her estate elected a November 30 year end. The executor projects that the estate will receive interest income of $50,000 by November 30, 2017, and will have no...

Q: List some major differences between the taxation of individuals and trusts.

List some major differences between the taxation of individuals and trusts.

Q: A simple trust has the following receipts and expenditures for the current

A simple trust has the following receipts and expenditures for the current year. The trust instrument classifies gains, losses, and trustee’s fees as part of principal. Dividends&ac...