1000010507

Taxation    Liam Patel is a 58-year-old South African resident, married out of community of property to Emily. The couple have been married for the past 20 years and live in Johannesburg. During the current year of assessment, Liam sold or donated the following assets: 1) On 01 August 2023, Liam received distressing news from his brother, Miguel, who was facing financial difficulties and sought Liam's assistance. Instead of lending Miguel the money to settle his debt, Liam donated the following to his brother, with no expectation of repayment: • On 10 August 2023, Liam generously donated gold coins with a market value of R300 000  and an original cost of R120 000, to his brother. Miguel had the option to either sell the coins or use them as collateral to secure a loan. Liam paid R40 000 in donations tax by the end of September 2023 with regards to this donation. • On 15 September 2023 Liam donated R200 000 in cash to his brother. Liam paid a further R40 000 in donations tax by end of…

Problem 2 A nonresident alien, married, died on September 2018. He left the following: Conjugal properties, Philippines, 5,000,000 Exclusive properties, Philippines, 2,000,000 Conjugal properties, USA, 10,000,000 Exclusive properties, USA, 5,000,000   The following deductions were claimed:   Actual funeral expenses, 1,250,000 Judicial expenses, 800,000 Claims against the estate, 1,725,000 Transfer for Public Use, 200,000 Medical expense, 875,000   Included in the Philippines gross estate (conjugal) were the following:   Domestic shares, 500,000 Share in a partnership, 1,000,000 Other tangible personal properties, 3,500,000   The Philippine exclusive properties were all tangible personal properties. These included a car, which was inherited 3 ½ years before the present decedent’s death, and had a fair market value of 500,000.   Required Determine the following: Exclusive Property of the Decedent Community Property Taxable Net Estate Estate Tax Due

Interview Notes • Chloe is single, a U.S. citizen, and has a valid Social Security number. No one else lives in the household with her. She turned 50 in 2023. • Chloe worked full time. Her total income from wages is $53,000. She has no other income. She is covered by a retirement plan at work. • Chloe contributed $6,000 to her traditional IRA in 2023. Chloe owns her home in the U.S. where she lived as her principal residence all year. She made the following energy efficient improvements to her home in 2023. These purchases meet the energy efficiency and other requirements to claim the energy efficient home improvement credit: o $300 on a home energy audit o $2,500 on new windows o $6,000 on a new natural gas hot water boiler 4. Chloe visits your site in February 2024 and says she wants to make the maximum IRA contribution for 2023. How much more can she contribute? a. $0 because it is after December 31 and too late to make a 2023 contribution b. $0 because she has already contributed…

LO.3 Hank was transferred from Arizona to North Dakota on March 1 of the current year. He immediately put his home in Phoenix up for rent. The home was rented May 1 to November 30 and was vacant during the month of December. It was rented again on January 1 for six months. What expenses related to the home, if any, can Hank deduct on his return? Which deductions are for AGI, and which ones are from AGI?

QUESTION 5  Howard and Raj are married out of community of property. The couple has two daughters, Penny (16) and Bernadette (28). Bernadette immigrated to Switzerland two years ago; she became a permanent resident of that country. Howard started a trust with their daughters as beneficiaries. Howard donated a house to the trust. The trust rents the house to tenants. The trust received R98,000 in rent for the year. The rent received was distributed to each daughter equally. Required With reference to legislation and reasons, calculate the amount to be included in the income of Howard and his daughters. Total M

Question 9 Mary Am lives in Detroit, Michigan, USA. She commutes daily to Windsor, Ontario, Canada, where she is employed by GM Company of Canada Limited. She works 9 am to 5 pm, Monday through Friday. Which one of the following best indicates Carla's residency status for Canadian income tax purposes for 2023? A A full-time resident B) A deemed resident (sojourner) C A part year resident A non-resident Question 10 An auditor reviewing Sneaky Corporation discovered that $100,000 of corporate revenue was being deliberately recorded in the books as a debit to Bank and a credit to shareholders loan. Which of the following statements is true? ↓ A This transaction does not fit any of the above options B) This transaction is an example of tax evasion c) This transaction is an example of tax planning. (D) This transaction is an example of tax avoidance

QUESTION 1 Part A Ahmed is a 44 year-old single male resident of South Africa. He inherited a 5 bedroom house situated in Eshowe from his grandfather. As he works in Durban he decided to sell the house for R1 350 000. The value of the house was estimated at R1 200 000 by the property valuator. The house was sold on 31 August 2023. Immediately after he received the money from the sale of the house, he invested it with a private local company, Coral Property Investment. By 29 February 2024, he earned a dividend of 4% based on his total investment. Ignore VAT REQUIRED: (30 Marks) Discuss with reference to the gross income definition whether or not the amounts received by Ahmed will form part of his gross income for the year ended 29 February 2024. (10 Marks)

Ms. Sharon Washton was born 26 years ago in Bahn, Germany. She is the daughter of a Canadian High Commissioner serving in that country. However, Ms. Washton is now working in Prague, Czech Republic. The only income that she earns in the year is from her Prague marketing job, $55,000 annually, and is subject to income tax in Czech Republic. She has never visited Canada. Determine the residency status of Sharon Washton

QUESTION 17 Alison owns a painting that she received as a gift from her aunt 10 years ago. The aunt created the painting. Alison has displayed the painting in her home and has never attempted to sell it. Recently, a visitor noticed the painting and offered Alison $5,000 for it. If Alison decides to sell the painting, classify the following as Yes, if it is a tax issue or No, if it is not a tax issue as they relate to the sale of the painting. Will Alison have a carryover basis for the painting equal to her aunt's basis for the painting? will Alison have a zero tax basis for the painting? Can she elect the altenative valuation for the gift from her aunt? Will the sale result in a taxable gain of $5.000? Is the painting an ordinary asset or a capital asset?

Question #39 of 85   Question ID: 1251813 Samuel has a $5 million gross estate. His solely owned business is his major asset. All of his other assets are also solely owned. Samuel has never married, but does have two children. His financial advisor has suggested that Samuel title all of his assets in some form of will substitute to avoid the costs of probate, which are very high in Samuel 's state. Which of the following expenses could Samuel avoid by following his advisor's advice? A personal representative's fee The premium on a surety bond for the personal representative Appraisal fees to value estate assets Federal estate taxes     A) II and III     B) I and IV     C) I and II     D) III and IV

Chapter 12 TRP 12-2 Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem.  Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year.  Dave (SSN 412-34-5670) and Alicia (SSN 412-34-5671) Stanley are married and file their return jointly. They have retired at the age of 51. The couple’s income consists of rental property, stock investments, and royalties from an invention. They sold their large house that they had purchased six years ago for $580,000 on October 18, 2020, for $1 million. They now live in a condo at 101 Magnolia Lane, Suite 15, Highland Park, FL 33853.   The rental property is an apartment complex (building cost $1.5 million and was purchased January 5, 2020) with 30 units that rent for $27,000 per month and are at 90% occupancy.  Rental income $ 291,600 Salaries 115,000 Payroll taxes 8,798 Real estate taxes…

24. A citizen of Canada moved to the United States on May 1st of 2022 and lived and worked in the United States the rest of the year is the following statement true and the situation.    A. End of the dual must apply for a social security number to work in the United States.    B. If the individual was issue a permanent residency card on June 1st 2022 they may be considered a US resident for tax purposes for 2022.

None

X a foreign citizen (not a person of Indian origin), leaves India for the first time in last 10 years on July 20, 2017. During the calendar year 2018, he comes to India on September 1 for a period of 40 days. During the calendar year 2019, he does not visit India at all but comes to India on March 25, 2020. Determine the residential status of X for the assessment year 2020-21

Domestic

13-13 Foreign Income Exclusions. J worked in Canada from August 1, 2020, through September 30, 2021. During 2021 her salary from work in Canada was $60,000 (in U.S. dollars), and her salary from work in the United States after she returned was $10,000. a) Calculate J's foreign earned income exclusion. b) Assume J earned $90,000 in Canada. What is her foreign earned income exclusion?

Question #60 of 85   Question ID: 1251856 Karen is the sole owner of a wildly successful small business. However, Karen's financial advisor has told her that her estate would be unable to meet its cash requirements if she were to die today, and the business would have to be sold. Karen, who is a widow with not children, is only 50 and plans to continue running the business for many years. However, she does want to take some action to prevent the possible sale of the business should she die, and prevent future appreciation of the business from inclusion in her gross estate. Karen is very close to one of her nieces, who has shown an interest in and aptitude for the business. Which one of the following actions would be most appropriate to help meet the liquidity needs of Karen's estate and would be consistent with her objectives and situation?     A) Karen should convert the business into an S corporation and gift shares in the corporation to her niece over a period of years.…

Chapter 1 TRP 1-1 Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Alex Montgomery is single and lives at 3344 Bayview Drive, Richmond Hill, GA 31324. His SSN is 412-34-5670. He recently graduated from the Savannah College of Art and Design and works as a video game developer. His Form W-2 contained the following information. Wages (box 1) = Federal W/H (box 2) = Social security wages (box 3) = Social security W/H (box 4) = Medicare wages (box 5) = Medicare W/H (box 6) - Required: Prepare a Form 1040 for Alex. Use the appropriate Tax Tables. Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. $ 72,288.22…