What is the value of her adjusted gross estate?
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Darleen and Leon live in Arizona and acquired all of their property interests while living there. They own a primary residence worth $2.2 million as tenants by the entirety. The couple owns a condo near a Colorado ski resort worth $800,000. Mortgages on the two homes equal $600,000. Darleen inherited money from her father which she deposited in a separate account. She used this money to acquire commercial property for an art gallery. The FMV of the commercial property is $1 million and has a mortgage of $400,000. Assume that Darleen died today. What is the value of her adjusted gross estate? Show your work.
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- Sahana is the trustee of Gina’s bankrupt estate. Gina owns a boutique business which operates from rented premises in a local shopping centre. The business itself is successful. The petitioner’s debt is not business-related. Gina is a qualified engineer and if she were to give up the shop, she could earn at least $130000 p.a. as an employee. Gina is single and has no dependents. Gina owns an apartment worth $500000 which is secured to TownBank. The outstanding mortgage is $330000. The petitioner’s debt is 80000. Additional unsecured debts for the business are approximately $30000. Gina has a personal credit card debt of $10000. Gina leases a car. She owns furniture, clothes, jewellery, a musical instrument and other personal effects. Gina also has $200000 in a superannuation fund. Unfair preferences were paid to 6 creditors prior to the presentation of the Creditor’s petition which totalled $4300. Required: assume you are Suhana. In a roughly chronological order, explain what actions…Nicanor met Inday in 2000. They married the following year. By 2005, Inday stayed home to take care of their two children. In 2021, Nicanor died. Inday provided the following list of properties acquired during their marriage so you can help them file the return and pay the corresponding estate tax, if any: PROPERTIES Family home: Zonal value of land - Php 5,000,000 Assessed value of land – Php 3,000,000 Assessed value of house – Php 5,000,000 Appraiser’s value – Php 20,000,000 1,000 Shares in ABC Corp. a listed company: Opening price – Php 900 Closing price – Php 1,200 Lowest Quote – Php 800 Highest Quote – Php 1,500 Average Value - Php 1,000 2,500 Shares in XYZ Corp. an unlisted company inherited by Nicanor from his father: Audited Financial Statements of XYZ Corp. disclosed the following: Assets – Php 10,000,000 Liabilities – Php 4,000,000 Outstanding shares of stocks – 10,000 Par value Php 100.00 per share Jewelry of Inday (wife) Value at time of purchase - Php…Jane has a gross estate estimated at $12 million. Approximately 75% of her estate is attributable to the value of personal property and collectible items. Jane is married but has no children. Her husband does not have a large estate because he spends money freely and foolishly. Since Jane is much older than her husband, she would like for him to benefit from her wealth after her death without giving him control over the principal either while he is alive or at his death. Jane wants as little of her estate assets as possible to go toward payment of estate taxes. She currently has no will but has come to you for advice regarding provisions she should put in a will. Which provision, if placed in her will, would be best to increase the liquidity of her estate and accomplish her other goals? A) Establish a testamentary trust naming her husband as the income beneficiary and trustee B) Establish a power of appointment trust naming her husband as the income beneficiary and a…
- Marcus purchased Vinnie and Marie’s personal residence for $225,000 cash and the assumption of their $100,000 mortgage. Vinnie and Marie bought the house six years ago for $275,000 and have used it as a primary residence. What amount of gain should Vinnie and Marie recognize on the sale of their personal residence?Hana is in the 24% tax bracket and owns depreciable business equip-ment that she purchased several years ago for $135,000. She has taken $100,000 of depreciation on the equipment, and it is worth $55,000. Hana’s niece, Michelle, is starting a new business and is short of cash. Michelle has asked Hana to gift the equipment to her so that Michelle can use it in her business. Hana no longer needs the equipment. Identify the alternatives available to Hana if she wants to help Michelle and the tax effects of those alternatives. (Assume that all alternatives involve the business equipment in one way or another, and ignore the gift tax.)Suhana is the trustee of gina's bankrupt estate. Gina owns a boutique business which operates from rented premises in a local shopping centre. The business itself is successful. The petitioner's debt is not business related. Gina is a qualified engineer and if she were to give up the shop she could earn $ 130,000 p.a as an employee . Gina is single and has no dependents. Gina owns an apartment which is worth $ 5,00,000 secured to town bank. The outstanding mortgage is $ 3,30,000. The petitioner's debt is $ 80,000. Additional unsecured debts for the business are approximately $ 30,000. Gina has a personal credit card debt of $ 10,000. Gina leases a car. She owns furniture, clothes, jewelry, a musical instrument and other personal assets. Gina also has $ 2,00,000 in a supwr annuation fund. Unfair preferences were paid to six creditors prior to the presentation of the creditors petition which totalled $ 43,00. Required: assume you are suhana in a roughly chronological order . What…
- Several years ago, Georgia transferred $500,000 of real estate into an irrevocable trust for her son, Lee. The trustee was directed to retain income until Lee's 21st birthday and then pay him the corpus of the trust. Georgia retained the power to require the trustee to pay income to Lee at any time and the right to the assets if Lee predeceased her. What amount of the trust, if any, will be included in Georgia's estate if she dies this year when the value of the real estate in trust is $700,000? Amount to be included in Georgia's estateNicanor met Inday in 2000. They married the following year. By 2005, Inday stayed home to take care of their two children. In 2021, Nicanor died. Inday provided the following list of properties acquired during their marriage so you can help them file the return and pay the corresponding estate tax, if any: PROPERTIES Family home: Zonal value of land - Php 5,000,000 Assessed value of land – Php 3,000,000 Assessed value of house – Php 5,000,000 Appraiser’s value – Php 20,000,000 1,000 Shares in ABC Corp. a listed company: Opening price – Php 900 Closing price – Php 1,200 Lowest Quote – Php 800 Highest Quote – Php 1,500 Average Value - Php 1,000 2,500 Shares in XYZ Corp. an unlisted company inherited by Nicanor from his father: Audited Financial Statements of XYZ Corp. disclosed the following: Assets – Php 10,000,000 Liabilities – Php 4,000,000 Outstanding shares of stocks – 10,000 Par value Php 100.00 per share Jewelry of Inday (wife) Value at time of purchase - Php…Many years ago James and Sergio purchased property for $945,000. Although they are listed as equal co-owners, Sergio was able to provide only $420,000 of the purchase price. James treated the additional $52,500 of his contribution to the purchase price as a gift to Sergio. Required: If the property is worth $1,134,000 at Sergio's death, what amount would be included in Sergio's estate if the title to the property was tenants in common? What if the title was joint tenancy with right of survivorship? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Amount to be included in Sergio's estate if: Title to the property was tenants in common Title to the property were joint tenancy with right of survivorship
- Nell, Nina, and Nora Potter, who are sisters, sell their principal residence (owned as tenants in common) in which they have lived for the past 25 years. The youngest of the sisters is age 60. The selling price is $960,000, selling expenses and legal fees are $63,000, and the adjusted basis is $120,000 (the fair market value of the residence when inherited from their parents 25 years ago; they made no capital improvements during the time they held the residence). The sisters plan to move into rental housing and not acquire another residence. Nell has contacted you on behalf of the Potters regarding the tax consequences of the sale.a. Write a letter to Nell advising her of the tax consequences and how taxes can be minimized. Nell’s address is 100 Oak Avenue, Billings, MT 59101.b. Prepare a memo discussing your approach to the situation for the tax files.Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her hus-band is a police detective. The family income consists of the following: $60,000 from Kate’s book royalties; $90,000 from Richard’s salary; $10,000 in life insurance proceeds from a deceased aunt; $140 in interest from savings; $4,380 in alimony from Kate’s ex-husband; $14,200 in child support from her ex-husband; $500 cash as a Christmas gift from Richard’s parents; and a $1,600 tuition-and-books scholarship Kate received to go to college part time last year. (a) What is the total of their reportable gross income?(b) After Richard put $5,600 into qualified retirement plan accounts last year, what is their adjusted gross income?(c) How many exemptions can the family claim, and how much is the total value allowed the household?(d) How much is the allowable standard deduction for the household?(e) Their itemized deductions are…Emma and Ruth are sisters. Emma sold two acres of land located next to Ruth's vacation home, which she purchased 3 years ago for $48,000, to Ruth for $45,000. Ruth owned the land for 16 months and then sold it to an adjoining neighbor for $ 47,600. How much gain or loss did Ruth recognize on the sale? - $400 loss - $2,600 gain $5,600 - No gain or loss
