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Required information (The following information applies to the questions displayed below) In 2010 Casey made a taxable gift of $5.9 million to both Stephanie and Linda (a total of $11.8 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.) b. This year Casey...
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EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over $10,000 20,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 Plus 18% 20 22 of Amount Over $ 0 10,000 40,000 20,000 24 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 40,000 60,000 80,000 100,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 100,000 150,000 150,000 250,000 1 34 250,000 500,000 37 500,000 750,000 39 750,000 1,000,000 1,000,000 40 *The...
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Hank is a single individual who possesses a life insurance policy worth $205.000 that will pay his two children a total of $515.000 upon his death. This year Hank transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to his two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Hank has made only one prior taxable gift of $5 million in 2011. (Refer to...
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Jones is seriously ill and has $6 million of property that he wants to leave to his four children. He is considering making a current gift of the property (rather than leaving the property to pass through his will). Assuming any taxable transfer will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required: a. Determine how much gift tax Jones will owe if he makes the transfers now. b. If he makes a...
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Please show work!!
(The following information applies to the questions displayed below.) 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, and the real estate to his church, The First Church of Methodology. The remainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following: Assets: Personal assets Cash and...
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Jones is seriously ill and has $3 million of property that he wants to leave to his four children. He is considering making a current gift of the property (rather than leaving the property to pass through his will). Assuming any taxable transfer will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required: a. Determine how much gift tax Jones will owe if he makes the transfers now b. If he makes a...
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9. Computing the federal transfer tax - Practice 2 Aa Aa Lester Midgley died in 2012, leaving an estate of $21,000,000. Lester's wife died in 2009. In 2009, Lester gave his son property that resulted in a taxable gift of $4,000,000 and upon which Lester paid $950,000 in transfer taxes. Lester had made no other taxable gifts during his life. Lester's will provided a charitable bequest of $500,000 to his synagogue. Use the following worksheet and Exhibits 15.7 and...
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9. Computing the federal transfer tax- Practice 2 Aa Aa Victor Fitzgerald died in 2012, leaving an estate of $24,000,000. Victor's wife died in 2009. In 2009, Victor gave his son property that resulted in a taxable gift of $5,000,000 and upon which Victor paid $1,100,000 in transfer taxes Victor had made no other taxable gifts during his life. Victor's will provided a charitable bequest of $750,000 to a museum of natural history Use the following worksheet and Exhibits 15.7...
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8. Computing the federal transfer tax - Practice 1 Aa Aa When Orville Kingshill died in 2012, he left an estate valued at $25,000,000. His trust directed distribution as follows: $400,000 in chanitable deductions ($75,000 to the local hospital plus $325,000 to his alma mater), and the remainder to his four adult children. Death-related costs were s9,500 for funeral expenses, and $150,000 in administrative expenses ($70,000 paid to attorneys, $20,oo0 paid to accountants, and $60,000 paid to the trustee of...
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Brenda Chatterjee is wealthy, single, and generous.
During the previous year she made the following gifts:
•Gift of stock to the local art museum (a 501(c)(3)
nonprofit organization): $245,000
•College tuition payment for niece: $29,000 made
directly to the institution
•Medical bills for elderly neighbor: $18,000 paid
directly to the hospital
•Home down payment gift to daughter: $30,000 paid
directly to the mortgage lender
•Cash gift to son: $17,000
•Use the gift tax rates shown below as a guide to...
Required information (The following information applies to the questions displayed below) In 2010 Casey made a taxable gift of $5.9 million to both Stephanie and Linda (a total of $11.8 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.) b. This year Casey...
EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over $10,000 20,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 Plus 18% 20 22 of Amount Over $ 0 10,000 40,000 20,000 24 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 40,000 60,000 80,000 100,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 100,000 150,000 150,000 250,000 1 34 250,000 500,000 37 500,000 750,000 39 750,000 1,000,000 1,000,000 40 *The...
Hank is a single individual who possesses a life insurance policy worth $205.000 that will pay his two children a total of $515.000 upon his death. This year Hank transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to his two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Hank has made only one prior taxable gift of $5 million in 2011. (Refer to...
Jones is seriously ill and has $6 million of property that he wants to leave to his four children. He is considering making a current gift of the property (rather than leaving the property to pass through his will). Assuming any taxable transfer will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required: a. Determine how much gift tax Jones will owe if he makes the transfers now. b. If he makes a...
Please show work!!
(The following information applies to the questions displayed below.) 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, and the real estate to his church, The First Church of Methodology. The remainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following: Assets: Personal assets Cash and...
Jones is seriously ill and has $3 million of property that he wants to leave to his four children. He is considering making a current gift of the property (rather than leaving the property to pass through his will). Assuming any taxable transfer will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required: a. Determine how much gift tax Jones will owe if he makes the transfers now b. If he makes a...
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9. Computing the federal transfer tax - Practice 2 Aa Aa Lester Midgley died in 2012, leaving an estate of $21,000,000. Lester's wife died in 2009. In 2009, Lester gave his son property that resulted in a taxable gift of $4,000,000 and upon which Lester paid $950,000 in transfer taxes. Lester had made no other taxable gifts during his life. Lester's will provided a charitable bequest of $500,000 to his synagogue. Use the following worksheet and Exhibits 15.7 and...
9. Computing the federal transfer tax- Practice 2 Aa Aa Victor Fitzgerald died in 2012, leaving an estate of $24,000,000. Victor's wife died in 2009. In 2009, Victor gave his son property that resulted in a taxable gift of $5,000,000 and upon which Victor paid $1,100,000 in transfer taxes Victor had made no other taxable gifts during his life. Victor's will provided a charitable bequest of $750,000 to a museum of natural history Use the following worksheet and Exhibits 15.7...
8. Computing the federal transfer tax - Practice 1 Aa Aa When Orville Kingshill died in 2012, he left an estate valued at $25,000,000. His trust directed distribution as follows: $400,000 in chanitable deductions ($75,000 to the local hospital plus $325,000 to his alma mater), and the remainder to his four adult children. Death-related costs were s9,500 for funeral expenses, and $150,000 in administrative expenses ($70,000 paid to attorneys, $20,oo0 paid to accountants, and $60,000 paid to the trustee of...