Belinda gifts a classic car to her niece Tara. The car's fair market value at the time of gift is $85,000. And Belinda's basis in the car was $44,000. 1) Who is responsible for the gift tax (if applicable)? 2) What is the value of the gift for gift tax purposes? Belinda; $15,000 Belinda; $85,000 Belinda; $44,000 O Tara; $85,000

Belinda gifts a classic car to her niece Tara. The car's fair market value at the time of gift is $85,000. And Belinda's basis in the car was $44,000. 1) Who is responsible for the gift tax (if applicable)? 2) What is the value of the gift for gift tax purposes? Belinda; $15,000 Belinda; $85,000 Belinda; $44,000 O Tara; $85,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. The gift tax payable of Mr. Alba on the July 14 donation is Mr. and Mrs. Alba gave the following donations: 05/03/19 Community property valued at P400,000 donated to Barbado, legitimate son who got married January 1, 2018. 07/14/19 Exclusive property of Mr Alba was donated to Carla, legitimate daughter who got married June 1, 2018. Value- P500,000. 12/30/19 Community property donated to Carla. The dowry has a market value of P800,000 08/05/20 Community property donated to Dianne, P700,000 with an unpaid mortgage of P150,000 assumed by the donee. Exclusive property of Mr. Alba was donated to ABC Corporation, cash of P200,000. O 21,800 O 27,000 O 30,000 O 6400
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Dave has $30,000,000 in assets and is 63 years old. He is married to Olivia. They have never made any gifts before. Assume a personal lifetime exclusion of $11,000,000. a) Assume he makes a gift of $23,000,000 to his extremely worthy nephew Brian. What are the exact (use numbers) tax consequences of this transactions to Dave and Brian? b) He gives $1,000,000 to Anne-Marie. c) Dave and his wife die while skiing near his vacation home in the snow. They have $7,000,000 at their time of death. After their somber half-million dollar funeral, the family deals with the estate tax. What is the estate tax paid? d) Assume all the same facts from A, B, and C, but Dave’s will also states that he would rather die than pay any estate tax. You are his tax advisor. How would you ensure he pays nothing if his wife is not willing to consider divorce? Use specific numbers.
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