Questions from Federal Taxation

Q: In 2017, Ginger Graham, age 46 and wife of Greg

In 2017, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Ginger’s gift tax liability for 2017 if she and Greg elect gift splitting and Greg gave t...

Q: In 2007, Frank made an installment sale of real property to

In 2007, Frank made an installment sale of real property to Stu, his son, for $1 million with payments due over a 10-year period. Frank did not file a gift tax return. For 2015, Frank reported taxable...

Q: Steve is considering the following transactions. Explain to him which actions

Steve is considering the following transactions. Explain to him which actions will constitute gifts for gift tax purposes. a. Transferring all his ownership rights in a life insurance policy to anoth...

Q: Dick wants to transfer property with a $600,000 FMV

Dick wants to transfer property with a $600,000 FMV to an irrevocable trust with a bank as the trustee. Dick will name his distant cousin Earl to receive all of the trust income annually for the next...

Q: In what circumstances might a potential donor be interested in making a

In what circumstances might a potential donor be interested in making a net gift? Explain the potential income tax problem with making a net gift.

Q: Compare and contrast a Sec. 2503(c) trust and

Compare and contrast a Sec. 2503(c) trust and a Crummey trust.

Q: From a nontax standpoint, would a parent probably prefer to make

From a nontax standpoint, would a parent probably prefer to make a transfer to a minor child by using a Sec. 2503(c) trust or a Crummey trust?

Q: Explain the requirements for classifying a transaction as a transfer of a

Explain the requirements for classifying a transaction as a transfer of a qualified terminable interest property (QTIP).

Q: Joel receives a $40,000 cash distribution from the JM

Joel receives a $40,000 cash distribution from the JM Partnership, which reduces his partnership interest from one­third to one­fourth. The JM Partnership is a general partnership that uses the cash m...

Q: A client is under the impression that a donor cannot incur a

A client is under the impression that a donor cannot incur a gift tax liability if he or she makes gifts to only U.S. charitable organizations. What should you say to the client?