Tax consequences of a property settlement

Reference no: EM13150592

Dave is willing to transfer the jointly owned home to Marcia. He wishes to keep the couples jointly owned boat. Dave will either transfer securities to Marcia ($100,000 adjusted basis, $150,000 fair market value) or will pay her $30,000 for 5 years with interest of 8%. What issues should Marcia and Dave consider when formulating their divorce agreement? Solution: Marcia and Dave should consider the taxability of the transfer of the home to Marcia and the boat to Dave. That is, what are the tax consequences of a property settlement?

Reference no: EM13150592

Questions Cloud

What initial cost of machine woul make the two machines : Assume an annual interest rate of %7. Which of the two units would you recommend ? What initial cost of machine A woul make the two machines identical in overal cost?

Explain hypothetical gas-phase reaction : A flask is charged with 0.140 mol of A and allowed to react to form B according to the following hypothetical gas-phase reaction. A(g) B(g) The following data are collected. times (s) 0 40 80 120 160 moles of A 0.140 0.068 0.049 0.031 0.019 (a)

What is meant by the term index of cell number : Cortical cells in control wheat have a higher index of cell number than cortical cells in gamma-irradiated wheat; explain this finding in terms of cellular processes that may be taking place in the coleoptile.

Find sample size suggested by newspaper article statement : Percentage points in either direction from what would have been obtained by interviewing all voters in the United States." Find the sample size suggested by this statement.

Tax consequences of a property settlement : What issues should Marcia and Dave consider when formulating their divorce agreement? Solution: Marcia and Dave should consider the taxability of the transfer of the home to Marcia and the boat to Dave. That is, what are the tax consequences of a ..

Evaluate the cost recovery : Hazel purchased a new business asset (five-year property) on November 30, 2009, at a cost of $100,000. This was the only asset acquired by Hazel during 2009. On January 7, 2010, Hazel placed the asset in service. She did not elect to expense any o..

Jonathan''s preferences are characterized : Jonathan's preferences are characterized by diminishing marginal rate of substitution. At his current consumption level Jonathan's marginal utility from beer is 5 and his marginal utility from Coke is 4. If Coke is placed on the horizontal axis, is J..

Rate of a reaction the longer it takes to reach completion : Select all of the correct statements about reaction rates from the choices below. The lower the rate of a reaction the longer it takes to reach completion.

Probability selected cell phone bill is between given value : Suppose local monthly cell phone bills are normally distributed with a standard deviation $12. What is the probability that a randomly selected cell phone bill is between $30 and $55?

User Account

All Pages