Chapter 1, Problem 19DQ

Meghan gives May (not Meghan’s spouse) a gift of $34,000 (plus 4905)  in 2021.  Meghan is married and has one child.  May is married, but does not have any children.  Is this gift taxable and why?  If so, to whom is it taxable and what amount is taxed?  If there is a tax, how can the tax be avoided in this circumstance?

Which of the following would constitute tax evasion?   a. Henry salary sacrifices future income for which services have not already been provided into superannuation.   b. Emily defers prepayments of income to a later income year.   c. Jane does not include $50 of interest from her bank account on her tax return.   d. Jia establishes a family trust and distributes income between family members equally.

For the following tax return problem, assume the taxpayer does not wish to contribute to the Presidential Election Fund. In addition, the taxpayer did not sell, receive, exchange or otherwise acquire any financial interest in any virtual currency during the year. If the taxpayers are entitled to the child tax credit, assume they did not receive the advance child tax credit payment for 2021. They will claim the entire tax credit. Maribel Gomez is a single taxpayer, SS# 412-34-5670, living at 5037 Circle Court, Crestview, IL 60543. Maribel is a supervisor whose 2021 shows gross wages of $94,850 and $14,500 of federal withheld. There was social security withholding of $5,881 and Medicare withholding of $1,375 and a state withholding of #2,595. Maribel did not itemize and had the following stock transactions for 2021. Stock Shares           Date Purchased             Date Sold             Sale Price         Cost Basis      5,500                         7/8/2020                  9/12/2021…