Jack a widower, died late last year (2020) with a gross estate of $10 million. Jack made one taxable gift in his lifetime of $2,000,000 to his brother this year before he (Jack) died. Funeral and administrative expenses cost $140,000. Jack’s debts and mortgages totaled $300,000. Calculate Jack’s estate tax liability, show your work. Gross EstateFuneral and Administration ExpensesDebts and TaxesCasualty and Theft Losses.Adjusted Gross EstateMarital DeductionCharitable DeductionState Death Tax DeductionTaxable Estate+ Adjusted Taxable GiftsFederal Estate Tax CalculationTentative Tax BaseTentative Tax (Compute tax)Gift Tax Paid or Payable (Credit)Estate Tax Payable before CreditsTax CreditsUnified CreditPrior Transfer CreditForeign Death Tax CreditFederal Estate Tax PayableTotal DeductionsTotal Deductions$$S$$$$Total Credits$

The federal estate tax is computed after the death of the taxpayer to calculate the tax liability on…

Jack a widower, died late last year (2020) with a gross estate of $10 million. Jack made one taxable gift in his lifetime of $2,000,000 to his brother this year before he (Jack) died. Funeral and administrative expenses cost $140,000. Jack’s debts and mortgages totaled $300,000. Calculate Jack’s estate tax liability, show your work.

Jack a widower, died late last year (2020) with a gross estate of $10 million. Jack made one taxable gift in his lifetime of $2,000,000 to his brother this year before he (Jack) died. Funeral and administrative expenses cost $140,000. Jack’s debts and mortgages totaled $300,000. Calculate Jack’s estate tax liability, show your work.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 6DQ

See similar textbooks

Similar questions

Gary and Wendy are married and file a joint tax return claiming their seven children, ages 7,9, 11, 13, 15, 17 and 19, as dependents. They pay Susan Smith $20,000 per year to care for their children after school and provide some house cleaning (you can ignore household employment taxes). Information for 2020 includes the following (cut & past table into Excel): ZOOM AGI including earned and unearned income 490,000 Gary's earned income 415,000 Wendy's earned income 55,000 Federal income taxes (all paid in 2020) State and local income taxes (all paid in 2020) Real estate property taxes Home mortgage interest Charitable contributions 108,000 25,000 8,900 14,200 7,900 Pay Susan Smith for childcare 20,000 (You can ignore any possible additional medicare tax and net investment income tax.) Starting with AGI, show each step of the tax formula and calculate taxable income, tax (before credits), child tax credit, child & dependent care credit, total tax credits, total tax (after credits), tax…
Tax credits reduce your Group of answer choices adjusted gross income. tax liability. taxable income. tax withholding. tax refund.
Which of the following can be deducted as interest expense? Interest on personal debt Interest on debt from a related creditor Imputed interest on capital Interest on assessed tax delinquency ANSWER:
For an accrual basis taxpayer, which of the following statements is TRUE regarding prepaid income? a.Group of answer choices b.Prepaid dues & subscriptions are recognized immediately c.Prepaid rent is recognized immediately d.Prepaid royalties are recognized when earned e.Prepaid interest is recognized as it is earned
You pay personal taxes on your calculated ____ income. a. adjusted gross b. marginal c. taxable d. gross
You pay personal taxes on your calculated _________________ income. Group of answer choices A.marginal B.taxable C.adjusted gross D. gross
MC: Topic: Income Taxation Statement 1: Proceeds of life insurance received by the beneficiary of the insured is a return on capital. Statement 2: The excess of proceeds over total premiums paid which is received by the beneficiary of the insured decedent is gross income and is taxable. * Both statements are true Both statements are false Only statement 1 is true Only statement 2 is true
Difference between tax deduction and tax credit. Give example of each. Some tax credits are referred to as refundable. What does this mean? Declining balance method of CCA?
The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally
If refunded, this is taxable Estate tax Donor’s tax Special assessment Fringe benefit tax
MC: Topic: Income Taxation Under this income taxation scheme, the full amount of tax is withheld by the payor before such income is received by the payee taxpayer. * Final income tax scheme Capital gains tax scheme Regular income tax scheme Any one of the above
$ 232,000 2,320,000 24,200 208,800 348,000 46,400 52,200 18,200 11,600 34,800 63,000 28,200 48,400 359,600 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,558,800. Timpanogos provided the following information relating to its 2022 activities: Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions Cost of goods sold for book and tax purposes Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2022 Rental income payments received in 2021 but earned in 2022 Rental income payments received in 2022 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books in 2022 Required: a. Reconcile…