Questions from Federal Taxation

Q: Describe to a married couple three advantages of making the gift-

Describe to a married couple three advantages of making the gift-splitting election.

Q: Both Damien and Latoya make taxable gifts of $250,000

Both Damien and Latoya make taxable gifts of $250,000 in the current year. Will their current year gift tax liabilities necessarily be identical? Explain.

Q: A donor made large taxable gifts beginning in 1999 and a taxable

A donor made large taxable gifts beginning in 1999 and a taxable gift in the current year. In the intervening years, the highest gift tax rates declined. In calculating the tax on taxable gifts of pre...

Q: A mother is trying to decide which of the two assets listed

A mother is trying to decide which of the two assets listed below to give to her adult daughter. The mother’s marginal income tax rate exceeds her daughter’s. Desc...

Q: Phil and Marcy have been married for a number of years.

Phil and Marcy have been married for a number of years. Marcy is very wealthy, but Phil is not. In fact, Phil, who has only $10,000 of property, is very ill, and his doctor believes that he probably w...

Q: Assume the same facts as in Problem C:12-21

Assume the same facts as in Problem C:12-21 and that Marcy has decided to give Phil property valued at $5.48 million. Phil probably will leave the gifted property to their children under his will. a....

Q: Carlos has heard about the unified transfer tax system and does not

Carlos has heard about the unified transfer tax system and does not understand how making gifts can be beneficial. Explain to Carlos how a lifetime gift fixes (freezes) the gifted property’s value for...

Q: Describe for a client five advantages and two disadvantages of disposing of

Describe for a client five advantages and two disadvantages of disposing of property by gift instead of at death.

Q: In general, what is the due date for the gift tax

In general, what is the due date for the gift tax return? What are two exceptions?

Q: Scott sells his one­third partnership interest to Sally for $

Scott sells his one­third partnership interest to Sally for $43,000 when his basis in the partnership interest is $33,000. On the date of sale, the partnership has no liabilities and the fo...