Questions from Individual Taxation

Q: Describe the unified credit and the purpose it serves in the gift

Describe the unified credit and the purpose it serves in the gift and estate tax.

Q: Compare and contrast the rules determining where domiciliary and non-domiciliary

Compare and contrast the rules determining where domiciliary and non-domiciliary businesses must file state income tax returns.

Q: Fred is retired and living on his pension. He has accumulated

Fred is retired and living on his pension. He has accumulated almost $1 million of property he would like to leave to his children. However, Fred is afraid much of his wealth will be eliminated by the...

Q: Sombrero Corporation, a U.S. corporation, operates through

Sombrero Corporation, a U.S. corporation, operates through a branch in Espania. Management projects that the company’s pretax income in the next taxable year will be $100,000, $80,000 from U.S. operat...

Q: For the holidays, Marty gave a watch worth $25,

For the holidays, Marty gave a watch worth $25,000 to Emily and jewelry worth $40,000 to Natalie. Has Marty made any taxable gifts this year and, if so, in what amounts? Does it matter if Marty is mar...

Q: Laura transfers $500,000 into trust with the income to

Laura transfers $500,000 into trust with the income to be paid annually to her spouse, William, for life (a life estate) and the remainder to Jenny. Calculate the amount of the taxable gifts from the...

Q: Red transferred $5,000,000 of cash to State

Red transferred $5,000,000 of cash to State University for a new sports complex. Calculate the amount of the taxable gift.

Q: In 2010 Casey made a taxable gift of $5 million to

In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a total of $10 million in taxable gifts). Calculate the amount of gift tax due this year and Casey’s unused exemption equiv...

Q: Tom Hruise was an entertainment executive who had a fatal accident on

Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom’s will directed his executor to distribute his cash and stock to his wife, Kaffie, the real estate to his church,...

Q: Hal and Wendy are married, and they own a parcel of

Hal and Wendy are married, and they own a parcel of realty, Blackacre, as joint tenants with the right of survivorship. Hal owns an additional parcel of realty, Redacre, in his name alone. Suppose Hal...