+1-415-670-9189
info@expertsmind.com
Discuss the estate and income tax consequences
Course:- Accounting Basics
Reference No.:- EM13765493




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question1: On June 1, 2013, Mario entered into a contract to sell real estate for $1 million (adjusted basis $200000). The sale was conditioned on a rezoning of the property for commercial use. A $500,000 deposit placed in escrow by the purchaser was refundable in the event the rezoning was not accomplished.

After considerable controversy, the application was approved on November 10, and two days later, the sum of $950,000 was paid to Mario's estate in full satisfaction of the purchase price. Mario had died unexpectedly on November 1. Discuss the estate and income tax consequences of this set of facts if it is assumed that the sale of the real estate occurred:

1. After Mario's death

2. Before Mario's death

Question 2: Barry creates a trust with property valued at $7 million. Under the terms of the trust instrument, Michelle (age 48) receives a life estate, while Terry (age 24) receives the remainder interest. In the month the trust is created, the interest rate is 4.4%. Determine the value of Barry's gifts.

Question 3: Jacobs gives stock (basis of $900,000 and fair market value of $2.2 million) to Mandy. As a result of the transfer in 2013, Jacob paid a gift tax of $90,000. Determine Mandy's gain or loss if she later sells the stock for 2.3 million.

Question 4: Bill and Ellen are husband and wife with five married children and eight grand children. Commencing in December 2013, they would like to transfer a tract of land (worth $1,008,000) equally to their children (including spouses) and grandchildren as quickly as possible without making a taxable gift. What do you suggest?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
If the machine has no salvage value at the end of seven years, and assuming the company's discount rate is 10%, what is the purchase price of the machine if the net present
A colleague has approached you for help with an experiment she is conducting. The experiment consists of asking a sample of consumers to taste five different recipes for mea
Angstrom Corporation purchased a truck at a cost of $60,000. It has an estimated useful life of five years and estimated residual value of $5,000. What is the amount of amor
H owns 50% of the stcok of Y corporation and has a basis for that stock of $25,000. His wife W owns the remaining 50% of the stock at a basis of $25,000. H has all his stock
Discuss the extent of income inequality in the United States. Has inequality in the distribution of income in the United States increased or decreased over time? Briefly exp
Explain how wholesalers and retailers account for sales of merchandise. Net sales represents sales less deductions for discounts and merchandise returned (returns and allowan
1. Railroad companies in the United States tend to have long-term, fixed rate, dollar denominated debt. Explain why. 2. The following table summarizes the results of regressi
How does this wok cleaning affect the process capacity? If the process capacity does not change due to the cleaning requirement, explain why and if it does, explain two ways