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A binds himself to give P10,000 to B upon the death of the father of A. Is the obligation of A conditional or one with a period?
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- (J) please answer asap... Melissa purchased a beach condo for $2,000,000.00. Shortly after she purchased the condo, Melissa changed the title on the condo to joint tenancy with right of survivorship, naming her son James as a joint tenant. James paid nothing to Melissa. At Melissa’s death, how much of the condo’s value will be included in her gross estate?Your client wants to purchase a residence for his aging parents, while minimizing the burden of ownership of the property for them and maximizing their enjoyment of it. Which one of the following states an advantage of titling the property in your client's name as sole owner rather than in joint tenancy with right of survivorship with his parents? A) The property will receive a step-up in basis when his parents die. B) The property will pass to his parents outside of probate. C) He will avoid gift tax liability by titling the property this way. D) His parents will have a life estate in the property if he predeceases them.On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer's adjusted basis for the stock sold is $65,000, what is his recognized gain or loss? Kramer's recognized _______ is $_________. What is his basis for the new shares? His basis for the new shares is $________. b. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss? Kramer's recognized _______ is $_________. What is his basis for the new shares? His basis for the new shares is $________. c. Advise Kramer on how he can avoid any negative tax consequences encountered in part (b). He could repurchase _________.
- 3. Instead assume that A finds out that he is terminally ill and has about 2 years to live. A sells his insurance contract to B for $500,000. A has made payments of $100,000 over his lifetime to the insurance company for the policy. Upon A's death B collects $750,000. Do either A or B have any gross income from this transaction and if so, how much. 4. A has $100,000 of short term capital gains recognized throughout the year. A is advised that because of a peculiarity in the tax law A can enter into a transaction that creates $100,000 of short-term capital losses and $95,000 of long term capital gains. Should A enter into this transaction? 5. A and B have a son, C, that lives with them for the entire year. C earns $15,000 and pays $12,000 towards his living expenses during the year. A and B incur $20,000 of expenses to support C during the year. Will A and B be entitled to claim C as a dependent on their joint tax return for the year. If so, why, if not why not?A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of S100 and is subject to a mortgage of S40. A) What are the consequences to each of the parties? B) Suppose in that the mortgage was placed on the property immediately before the transfer to Newco. A wanted cash in order to buy a yacht to be used for personal purposes, so he took out a mortgage on the land. Would this change your answer C) Suppose instead that the mortgage was for $60. Suppose further that this mortgage was incurred on the purchase of the property many years ago. Would this change your answer? D) Same as (c) except that A also transfers accounts payable of $10. A is a cash basis taxpayer. How would this change your answer?T bought an antique desk and chair from her employer for $50 in Year 1 when the firmbought all new office furniture. The desk and chair had a fair market value of $500.The property increases in value to $700 in Year 2, and T sells it for $900 in Year 3.a. T has realized income of $450 in Year 1 only if the difference between thevalue of the items and their price was intended as compensation.b. T will realize income of $450 in Year 1 regardless of her employer’s motive.c. T will realize income in Year 2 because the property has increased in value.d. None of the above T grows beets in her own garden. Although T detests beets, she will be required torecognize income when:a. She harvests her beets.b. She consumes beets that she could have sold for $100.c. She sells beets for $100 to somebody who actually likes them.d. She exchanges $100 worth of beets for $100 worth of spinach grown by herneighbor.e. Both (c) and (d) are correct
- F25.Assume Darrin transfers ownership of the life insurance policy on his life to an Irrevocable Life Insurance Trust (ILIT) and retains the right to borrow against the policy. Assume Darrin dies five years later. Which of the following is correct regarding the treatment of the proceeds of the life insurance policy? O The proceeds will always be included in Darrin's federal gross estate. The proceeds will be included in Darrin's federal gross estate if he has any outstanding loans against the life insurance policy. O The proceeds will be included in Darrin's federal gross estate if Darrin continued paying the policy premiums after the life insurance policy was transferred to the ILIT. O The proceeds will never be included in Darrin's federal gross estate.Bonnie and Clyde jointly own their own home when Clyde defaults on credit card debt. To determine if Clyde is insolvent, how will the home play into the calculation?
- Val died on May 13, 2021. On July 3, 2018, she gave a $400,000 lite insurance policy on her own lite to son Ray. Because the value of the policy was rela- tively low, the transter did not cause any gift tax to be payable. a. What amount was included in Val's gross estate as a result of the 2018 gift? 6. What amount was included in Val's gross estate if the property given was land instead of a life insurance policy? C. Refer to Part a. What amount would have been included in Val's gross estate if she instead gave Ray the policy on April 30, 2017?Mort owns a property. Jessica Rosen holds a first mortgage against it, and Alex Nelligan holds a second mortgage. Mort defaults on his mortgage payments. Ms. Rosen forecloses without joining Mr. Nelligan in the foreclosure suit. The property is sold to Shelia McBride at the foreclosure sale. What are Mr. Nelligan’s rights?
