Question

20. All of the following statements concerning the exclusions of gifts from gross income are correct except: (A) The concept of donative intent is based on objective intent. (B) As a general rule gifts between employers and employees are included in the employee's gross income. (C) As a general rule income earned by a gift (e.g., dividends from stock given as a gift) is included in the gross income of the recipient after the gift is consummated. (D) As a general rule, inheritances are received income tax free by the recipient 21. Your client Xavier has a Social Security benefit of $12,000, tax-exempt income of $1,000, and an adjusted gross income of $18,000. What is his provisional income? a. $31,000 b. $30,000 c. $25,000 d. $13,000 22. Your clients (Ralph and Alice) are getting divorced. In 2020, how much will Alice's taxable income increase if: She gets $24,000 in alimony She gets $24,000 in child support She gets $250,000 in a property settlement . . a. $298,000 b. $274,000 c. $250,000 d. $0

Answer 1

20)OPTION D IS THE ANSWER .We have to pay tax on inheritance received.

21)OPTION B IS THE CORRECT ANSWER 25000(12000/2=6000+18000+1000)

22)OPTION D IS THE CORRECT ANSWER Generally money that is transfered between (ex) spouses as part of a divorce settlement such as to equilize assets is not taxable to recepient and not deductable by the payer.