Right before his death from a terminal illness, Shing makes a gift of $705,000 cash to his churcha gift that he had planned to bequeath to the church anyway. Presuming Shing had a marginal Federalincome tax rate of 35% and his Federal estate tax bracket is 40%, what is the tax effect of his lifetime transfer. Ignore the 20 % / 30 % /50 % / 60% contribution limitations. If an amount is zero, enter "0". fgifted during his lifetime, Shing will save $ in income taxes. If made as a bequest from his estate, the estate will save$ in estate taxes.

Shing's marginal Federal income tax rate is 35%.The gift amount is $705,000.The tax savings from the…

Answered: Right before his death from a terminal…

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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Adolfo Kiloboy, a wealthy businessman and a resident citizen of the Philippines, donated to his friends during 2020: a.) January 15 – 180,000 b.) March 12 – 80,000 c.) April 5 – 100,000 d.) June 27 – 75,000 The donor’s tax due on January 15 is:
Your client has made previous lifetime gifts that have fully exhausted his applicable credit amount. He has asked you to advise him about the tax consequences of transferring his closely held business, valued at $350,000, to his daughter in exchange for a lump sum payment of $300,000. You should inform him that the most important tax implication of this intrafamily business transfer is that A) he will be making a taxable gift of $50,000, because the value of the transferred business exceeds the lump sum payment of $300,000. B) he will be making a taxable gift of $350,000, because the Chapter 14 rules require his retained interest to be valued at zero. C) he will have to include $50,000 minus one annual exclusion in adjusted taxable gifts in his estate tax calculation as an adjusted taxable gift. D) none of the above.
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Melissa is a very generous single woman. Before this year (2023), she gave over $12,920,000 in taxable gifts over the years and has completely exhausted her applicable credit amount. In the current year, Melissa gave her daughter Riley $100,000 and promptly filed her gift tax return. Melissa did not make any other gifts this year. How much gift tax must Riley pay the IRS because of this transaction? A.$0 B.$33,200 C.$40,000 D.$45,000
John and Charlotte are considering contributing $1,000 to their church. This contribution will bring their total itemized deductions to $2,000. Assuming the standard deduction is $10.000 per person and they are in the 15% marginal tax bracket, how much will they save in taxes by contributing this $1,000 to their church? Type your answer here
am. 167.
Gary, who is single, has adjusted gross income of $ 105,000 and itemized deductions of $15,000. He is considering making a charitable contribution of $5,300 and he is in the 24% tax bracket. Gary could also spend $5,300 on a postsecondary education course that qualifies for the Lifetime Learning Credit. Which is the best tax choice to reduce his overall liability? Make a charitable contribution Spend on a postsecondary education course Best Tax Choice Reduction in tax liability $ LA $ #
17. Noah gave $750 to a good friend whose house was destroyed by an earthquake. In addition, Noah contributed his time, valued at $250, in the cleanup effort. What’s amount of charitable deduction may Noah claim on his tax return for the current year, if his AGI is $80,000.
a married couple, Renata and Lionel, decide to give gifts to help their friends. They choose to treat all gifts given by either spouse to a third party during the year as if the gifts were made one-half by each spouse. Renata gives a 20000 gift to one couple (sam and Diane) and Lionel gives a 16000 gift to a second couple (ray and debra). What is the amount of the reduction in the lifetime exemption from the gifts?
n 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused applicable credit under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) Note: Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable. a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.
In 2022, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? Required: Elaine's AGI is $80,000. Elaine's AGI is $168,000. Elaine's AGI is $184,000.
Under Megan's will, $10,000 a year is to be paid to his widow and $5,000 a year is to be paid to his daughter out of the estate’s income during the period of estate administration. No charitable contributions are made by the estate. During 2022, the estate made the required distributions and the estate’s distributable net income was $12,000. How much of the $10,000 distribution received from the estate must Megan's widow include in her 2022 gross income?

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