Sherry transfers each of the following gifts during 2023. Sherry is not married. Identify the taxable gift amount for each item (before any exclusion) Gift Stock to her favorite charity with FMV of $40,000 and basis of $20,000 Cash to her daughter of $25,000 $200,000 to an irrevocable trust to distribute annually to her. granddaughter $25,000 to pay for medical expenses for her mother The amount included in Taxable Gifts

Sherry transfers each of the following gifts during 2023. Sherry is not married. Identify the taxable gift amount for each item (before any exclusion) Gift Stock to her favorite charity with FMV of $40,000 and basis of $20,000 Cash to her daughter of $25,000 $200,000 to an irrevocable trust to distribute annually to her. granddaughter $25,000 to pay for medical expenses for her mother The amount included in Taxable Gifts

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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Madeline made a stock gift of $40,000 to the American Cancer Society, a qualified public charity. Madeline itemizes her deductions and has an adjusted gross income of $120,000. What is the maximum income tax deduction allowable to Madeline in the current year for her charitable contribution? A) $40,000 B) $72,000 C) $36,000 D) $60,000
Liz had AGI of $130,000 in 2020. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2020. What is the amount of Liz’s deduction assuming that she purchased the stock on December 3, 2019, and the stock had a fair market value of $17,000 when she made the donation? Assume the same facts as in part (a), except that Liz purchased the stock on July 1, 2017. Assume the same facts as in part (a), except that the stock had a fair market value of $7,500 (rather than $17,000) when Liz donated it to the charity.
Norma, a widow, has made lifetime gifts to her two grandchildren in an effort to reduce the size of her gross estate. In 2012, Norma made a $100,000 taxable gift. She made another $150,000 taxable gift in 2014. She used her gift tax applicable credit amount to offset any gift tax liability for all gifts. What amount of gift tax applicable credit remains available to Norma in 2022? A)$4,641,000 B)$70,800 C)$4,656,000 D)$4,699,000
During the year, Mitchell, a single taxpayer, gave the following gifts: $10,000 cash to his nephew $20,000 tuition paid for his 24-year-old daughter, paid directly to the State University $20,000 cash to his brother 50 shares of stock to his niece valued at $200 a share Assume an annual gift exclusion of $17,000. In filing his annual gift tax return, what is the amount of his taxable gifts?
Jim has elected to treat transfers (on behalf of his son) made by him during tax year 2022 to a qualified state tuition program as made ratably over 5 years. His total contribution to this plan during 2022 is $80,000. He makes no other transfers during tax year 2022. What amount will be treated as a taxable gift in tax year 2022?
In 2019, Joshua gave $12,500 worth of Microsoft stock to his son. In 2020, the Microsoft shares were worth $22,500. What was the gift tax in 2019? The gift tax exemption in 2019 was the same as in 2020. Gift tax
This year Natalie transferred $500,000 of bonds to a revocable trust with directions to the trustee to pay income to her aunt for five years after which the corpus is to be distributed to Natalie's niece. At year end, the trustee paid $14,000 of income to the aunt. Which of the following is a true statement? Natalie has made a completed gift of $500,000. Natalie has made a taxable gift of $1,000. Natalie has not made a completed gift because the trust is revocable. O Natalie has made a taxable gift of $474,000. O None of these. Show Transcribed Text O the age of the life tenant. G The calculation of the value of a life estate in a trust generally does not depend upon which of the following factors? the Section 7520 interest rate. O the value of the property at the time of the transfer. the manner in which the trust corpus is invested. O All of these. (²
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Linda Smith paid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a face value of $40,000. At age 60, Linda decides to collect the face value of the policy. In the year of collection, how much will Linda include in her taxable income?
In 2019, Arvin received 200 shares of common stock as a gift. The stock was worth $5,000 when he received it, and the donor's adjusted basis at that time was $7,500. Arvin sold the stock in 2021 and received the following Form 1099-B. There were no adjustments to Arvin's basis during the period he held the property. What is his capital gain? (Answer choices are below the image.) CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Applicable checkbox on Form 8949 or foreign postal code, and telephone no. E E-VESTING.COM 751 FORTUNE STREET YOUR CITY, YS XXXXX (XXX) 598-5563 PAYER'S TIN XX-XXXXXXX RECIPIENT'S name ARVIN BERTRAND Street address (including apt. no.) 834 SYCAMORE TRAIL Account number (see instructions) 586344322 City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YS XXXXX CUSIP number 14 State name YS Form 1099-B RECIPIENT'S TIN $1,500 $2,500 $4,000 $9,000 XXX-XX-XXXX Mark for follow up FATCA…
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
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