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- Carlos and Connie own a farm as tenancy by the entirety (TBE). The farm is currently valued at $2 million. All of the following statements are correct except A)if Connie dies, $1 million is included in her gross estate for estate tax purposes. B)if Carlos dies, Connie receives a stepped-up basis in 100% of the farm. C)if Carlos dies, Connie becomes full owner of the farm by right of survivorship. D)Carlos and Connie are spouses.1Mason buys real estate for $2,215,800 and lists ownership as follows:"Mason and Dana, joint tenants with the right of suvivorship." Mason dies first, when the real estate is valued at $2,880,540. How much is included in mason's gross estate in Mason and Dana are a.brother and sister and b. Spouces
- Sherry Lockey, who is single, has a new limited partnership investment in a commercial rental project in which she has no personal involvement. During 2021, her share of the partnership loss equals $15,000. Sherry also has a new rental house that she actively manages, and this activity generated a $9,000 loss for 2021. Sherry had no passive loss carryover from prior years. If Sherry's modified adjusted gross income before passive losses is $138,000, calculate the deduction amounts for Sherry's 2021 tax return using Form 8582 (page 1). If an amount box does not require an entry or the answer is zero, enter "0". Note: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 3d, 4, and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. Form 8582 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Sherry Lockey Part I 2021 Passive Activity Loss Caution: Complete Parts IV and V…Matt and Kate have an AGI of $200,000 and they file married filing jointly and claim two dependent children whose ages are 6 and 17 and a dependent parent. What is the amount of the total child and other dependent credit for them on their 2020 tax return?Carl and Karina file a joint return. Karina earned a salary of $40,250 and received dividends of $3,180, taxable interest income of $2,090, and nontaxable interest of $1,045. Carl received $9,360 of social security benefits and a gift of $6,090 from his brother. What amount of social security benefits is taxable to Carl and Karina? Taxable social security benefits = $
- Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11 percent annual before-tax return on a $240,000 investment. Andrea’s marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, Andrea will be required to pay an additional 2.9 percent for self-employment tax and an additional .9 percent for the additional Medicare tax. Further, she is eligible to claim the full deduction for qualified business income. Assume that SHO will pay out its all of its after-tax earnings every year as a dividend if it is formed as a C corporation. How much cash after-taxes would Amanda receive from her investment in the first year if SHO is organized as an LLC? Same facts as in Question 1 above. How much cash…Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $400,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until November 1 of year 1, when they sold the home for $500,000. The Pratts' marginal ordinary tax rate is 35 percent. (Leave no answer blank. Enter zero if applicable.) b. Assume the Pratts sell the home because Stephanie's employer transfers her to an office in Utah. How much gain will the Pratts recognize on their home sale? Recognized gainSusan's salary is $44,000 and she received dividends of $600. She received a statement from SJ partnership indicating that her share of the partnership's income was $4,000. The partnership distributed $1,000 to her during the year and $600 after year-end. She won $2,000 in the state lottery and spent $50 on lottery tickets. Requirement Which amounts are taxable? (Complete all input fields.) Taxable in the current year? Salary, $44,000 Dividends received, $600 Share of partnership income, $4,000 Partnership distribution in the current year, $1,000 Partnership distribution in the following year, $600 State lottery winnings of $2,000
- [The following information applies to the questions displayed below.] Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $80,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. Note: Round your intermediate calculations to the nearest whole dollar amount. b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction?Mason buys real estate for $1,500,000 and lists ownership as follows: “Mason and Dana, joint tenants with the right of survivorship.” Mason dies first, when the real estate is valued at $2,000,000. How much is included in Mason’s gross estate if Mason and Dana are: Brother and sister? Husband and wife?Ms. Singh, who is in the 37 percent tax bracket, owns a residential apartment building that generates $86,000 annual taxable income. She plans to create a family partnership by giving each of her two children a 15 percent equity interest in the building. (She will retain a 70 percent interest.) Ms. Singh will manage the building, and value of her services is $16,000 per year. Required: If Ms. Singh's children are in the 12 percent tax bracket, compute the tax savings from this income-shifting arrangement. (Ignore any payroll tax consequences.) Answer is complete but not entirely correct. Tax savings from this income-shifting arrangement $ 7,712