Ricardo transferred $1,000,000 of cash to State University for a new sports complex. Calculate the amount of the taxable gift.
What will be an ideal response?
Zero.
The gift qualifies for an annual exclusion ($15,000 in 2019) and a $985,000 charitable gift tax deduction. Hence, there is no taxable gift. If Ricardo makes no other gifts this year, he need not even file a gift tax return. Ricardo can also claim an income tax deduction for the transfer.
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Odessa owes Kevin $2,000. On July 1, Kevin assigns the right to the $2,000 to Troy. Thereafter, on July 15, Kevin assigns the same right to Donna, who in good faith gives value for it and knows nothing about the first assignee. In this case:
A) Troy has the right to the payment of $2,000. B) Donna has the right to the $2,000. C) neither Troy nor Donna can claim the $2,000. D) the rule differs in different states. Depending on which rule a state follows, the answer will vary.
Kate recognized a $25,700 net long-term capital gain and a $33,000 net short-term capital loss this year. What is her current net income tax cost or savings from her capital transactions if her marginal rate on ordinary income is 32%?
A. $3,450 net tax cost B. $0 C. $2,336 net tax savings D. $960 net tax savings
The IRS can't impose an accuracy-related penalty on an individual who relied on the advice of a CPA in preparing his tax return.
Answer the following statement true (T) or false (F)
When there is interdependence between the corporation and the stakeholder, which strategy exists?
A) Indirect/withholding B) Stakeholder power C) Direct/usage D) Firm power E) Usage/withholding