Questions from General Taxation

Q: Cora was in Europe from Thanksgiving of 2016 until early January of

Cora was in Europe from Thanksgiving of 2016 until early January of 2017. When she returned to her home, she found it had been broken into and jewelry with a fair market value of $40,000 and a basis o...

Q: Which of the following items are included in the decedent’s gross estate

Which of the following items are included in the decedent’s gross estate? a. A life estate in a trust that pays the decedent $25,000 per year until he dies b. A remainder interest in a trust worth $...

Q: What provisions apply to a personal residence that is subject to an

What provisions apply to a personal residence that is subject to an involuntary conversion?

Q: Five years ago, Jason purchased a $400,000 life

Five years ago, Jason purchased a $400,000 life insurance policy on his life. For each of the following, indicate how much of the $400,000 policy proceeds are included in his gross estate. a. The proc...

Q: Laura transferred property valued at $120,000 into an irrevocable

Laura transferred property valued at $120,000 into an irrevocable trust. Laura is to receive one-half of the income each year for the balance of her life. The other half of the income and the remainde...

Q: When Ben died, his executor elected the alternate valuation date.

When Ben died, his executor elected the alternate valuation date. What value is included in the gross estate for each of the following properties? a. Marketable securities valued at $80,000 at date o...

Q: Samson’s gross estate was valued at $1 million when he died

Samson’s gross estate was valued at $1 million when he died. Determine the value of his taxable estate before any credits using the following information: • The executor’s fees were $16,000. • His f...

Q: Peter exchanges a building valued at $400,000 for land

Peter exchanges a building valued at $400,000 for land also valued at $400,000 in a qualifying like-kind exchange. The building has a basis of $230,000. What are Peter’s realized gain or loss and the...

Q: Mary is John’s surviving spouse. He used $450,000

Mary is John’s surviving spouse. He used $450,000 of his gift and estate tax exclusion for his lifetime gifts and his estate used $2,300,000 of his estate tax exclusion in closing his estate. What is...

Q: Glen transferred corporate stock worth $300,000 with a tax

Glen transferred corporate stock worth $300,000 with a tax basis of $160,000 to an irrevocable trust. No gift taxes are paid. The terms of the trust require the independent trustee to distribute the t...