Questions from General Taxation

Q: Thomas died on August 15 of the current year. On September

Thomas died on August 15 of the current year. On September 2, his estate received a check for $2,000 from Thomas’s former employer for his final pay period. On September 18, Thomas’s estate received a...

Q: Wayne created a trust six years ago for the benefit of his

Wayne created a trust six years ago for the benefit of his children. In the current year, when the value of the trust assets is $1,000,000, Wayne transfers additional property valued at $300,000 into...

Q: In June of year 1, Angelina (a calendar-year

In June of year 1, Angelina (a calendar-year taxpayer) becomes the beneficiary of a new calendar-year trust. At the same time, Angelina also becomes the beneficiary of an estate that elects a March 31...

Q: Charlie exchanged land valued at $450,000 and a sports

Charlie exchanged land valued at $450,000 and a sports car valued at $50,000 for a 40 percent interest in a partnership that planned to build an apartment complex on the property. The land has a $325,...

Q: Carolyn has made no previous taxable gifts. Determine her potential gift

Carolyn has made no previous taxable gifts. Determine her potential gift tax if she makes $2,650,000 in taxable gifts in the current year after each donee’s annual exclusion but before her lifetime ex...

Q: Benjamin has made no previous taxable gifts. Determine his gift tax

Benjamin has made no previous taxable gifts. Determine his gift tax if he makes $14,000,000 (after annual exclusions) in taxable gifts in 2017.

Q: JR received 10,000 shares of Jones-Redding valued at

JR received 10,000 shares of Jones-Redding valued at $50 per share in exchange for a building valued at $1,000,000 and the assumption of the building’s $500,000 mortgage. What are the tax consequences...

Q: Edward gave 15,000 shares of ABC stock to Valerie on

Edward gave 15,000 shares of ABC stock to Valerie on July 15. On July 15, the highest selling price for the stock was $40 per share, and the lowest selling price was $36 per share. What is the value o...

Q: Julie had a gross estate of $7 million when she died

Julie had a gross estate of $7 million when she died in 2017. Her funeral expenses were $26,000; her administrative expenses were $30,000; her charitable deduction was $350,000; and her marital deduct...

Q: John gave $30,000 to each of his 10 grandchildren

John gave $30,000 to each of his 10 grandchildren this year. Lisa, his wife, made no gifts during the year. a. How much are John’s taxable gifts if gift splitting is not elected? b. How much are Joh...