Nan and Neal are twins. Nan invests $5000 at 7 percent at age 25. Neal invests $5000 at 7 percent at age 30. Both investment compound interest annually. Both twins retire at age 60 and neither adds or withdraws funds prior to retirement.
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- Sue, aged 48 and Paul, aged 49 have two daughters- Leena aged 17 and Reena aged 15. Sue works as a part-time teacher in a secondary school and earns a $26,000 p.a. salary (plus minimum superannuation guarantee contribution).Paul works as a dentist and earns $145,000 (plus minimum superannuation guarantee contribution). Paul is anxious about their post-retirement financial situation. The couple has approached you for financial advice in respect of reducing the tax payable and their retirement planning. Superannuation Sue (20% Tax Free) 270,000 Sue’s Superannuation asset allocation Investment Asset Allocation Performance p.a. after tax Australian Share 50% 4% Cash & Fixed Interest 15% 1.4% International Shares 30% 10.80% Property 5% 3.10% Calculate the expected return for Sue’s superannuation portfolio using the return for the year ended 2022. Explain to Sue why her superannuation…Nan and Neal are twins. Nan Invests $5,000 at age 25 while Neal invests the same amount at age 30. Nan houses a retably eaten duten annual interest rate of 7%. Both twins plan to retire at age 65 and neither adds nor withdrews funds prior to remental would to have the sa money as Nan by their retirements, what annual interest rate must his investment eam? OA8.17 % OB.8.04% OC.8.66% O D. 8.00% OE. None of these are correctDetermine the taxable gift in each of the following unrelated scenarios:Abram is single and gives $35,000 to each one of his eight grandchildren.Jacob is married and gives $35,000 to each one of his eight grandchildren. He and his wife gift split.In January, Curt sells YTM stock (FMV = $30,000) to Martina for $20,000.David sells a $500,000 real estate property to Joe for $100,000.In the ordinary course of business, Joe sells a diamond ring valued at $30,000 for $15,000 to a customer named Donna.Determine the items exempt from gift tax that were paid by Yancey:College expenses for his son paid directly to the institutionTuition = $20,000Room and Board = $10,000Transfer to Throw Them All Out political party = $3,000College expenses for his daughter paid directly to herTuition = $35,000Room and Board = $10,000Medical expenses for his son = $20,000Medical expenses for his son’s friend Sergio = $5,000Determine the annual exclusion in each of the following unrelated…
- Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $95,000 and qualified business income of $20,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $250,000 and they sold it for $300,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,500 of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) Comprehensive Problem 4-57 Part-a (Algo) a. What is the Jacksons' taxable income, and…Marc and Mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules for 2022) Complete Schedule 1 of Form 1040 for Marc and Mikkel.Diego is a single individual who owns a life insurance policy worth $1.54 million that will be worth $8 million upon his death. This year Diego transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to Diego's two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Diego has made only one prior taxable gift of $12 million in January of 2018. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required: a. Calculate the amount of gift tax due (if any) on the transfer of the insurance policy. b. Diego died unexpectedly this year after transferring the policy. At the time of death, Diego's probate estate was $25 million, to be divided in equal shares between Diego's two children. Calculate the amount of cumulative taxable transfers for estate tax purposes. Note: For all requirements, enter your answers in dollars and not in millions of dollars. a. Amount of gift tax b. Amount of cumulative taxable…
- Chris 45 and Alison 46 are marries and they will file a joint return . During the year they earned 82500 wages. They also jad investment income consisting of 200 interest income from a savng account 350 interest income from a certificate of deposit held with another bank 250 interest income from a us treasury 500 tax exempt interest income from municipal bond and 1700 in ordinart dividends from a mutual fund what amout will cris and allison report for taxable interest in their 1040Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $82,500, and it had a market value of $132,000 on the date of the transfer. Cecile sold the stock for $115,500 a month after receiving it. In addition Casper is required to pay Cecile $4,125 a month in alimony. He made five payments to her during the year. What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". a. How much gain or loss does Casper recognize on the transfer of the stock? b. Does Casper receive a deduction for the $20,625 alimony paid? c. How much income does Cecile have from the $20,625 alimony received? $ d. When Cecile sells the stock, how much gain or loss does she report? Cecile will report a of $Last year Robert transferred a life insurance policy worth $470,000 to an irrevocable trust with directions to distribute the corpus of the trust to a grandson, Danny, upon graduation from college, or to Danny's estate upon death. Robert paid $41,000 of gift tax on the transfer of the policy. Early this year, Robert died, and the insurance company paid $4.2 million to the trust. What amount, if any, is included in Robert's gross estate? Note: Enter your answers in dollars, not millions of dollars. Amount to be included in Robert's gross estate
- Kay turned 73 on March 17th of Year 2 (which was after the year 2023 and before the year 2033). Her profit-sharing account balance was $500,000 at the end of Year 1 and $550,000 at the end of Year 2. Her beneficiary is her favorite granddaughter, Jordan, who turned 12 years old on July 23rd of Year 2. Assume that the joint life expectancy factor for a 73-year-old and a 12-year-old is 73 and the joint life expectancy for a 74-year-old and a 13-year-old is 72. Also, assume that the life expectancy factor based on the uniform lifetime table for someone who is 72, 73 and 74, is 27.4, 26.5, and 25.5, respectively. Kay takes a distribution of $10,000 in November of Year 1 and in Year 2. What is the Kay's minimum distribution for Year2? $18,868. $6,849. $20,073. $20,755.Lance has two adult children from a previous marriage. He has gifted them money for the past three years from his separate bank account and his wife has consented to split the gifts each year. Lance made gifts to his children as follows: 2016: Gifts of $60,000 to each child 2017: Gifts of $40,000 to each child 2018: Gifts of $50,000 to each child Explain the gift tax filing requirements. Will Lance have to file a gift tax return? What about his wife?Mitch and Bill are both age 75. When Mitch was 23 years old, he began depositing $1300 per year into a savings account. He made deposits for the first 10 years, at which point he was forced to stop making deposits. However, he left his money in the account, where it continued to earn interest for the next 42 years. Bill didn't start saving until he was 46 years old, but for the next 29 years he made annual deposits of $1300. Assume that both accounts earned an average annual return of 4% (compounded once a year). Complete parts (a) through (d) below. A) How much money does Mitch have in his account at age 75? B) How much money does Bill have in his account at age 75. C) Compare the amounts of money that Mitch and Bill deposit into their accounts. Mitch deposits _ in his accunt and Bill deposits _ in his account. D) Draw a onclusion about the parable. Choose the correct answer. -Bill ends up with more money in his account than Mitch because he makes more deposits than…
