Estate Income Tax Return Essay

According to David H. Alexander an estate attorney in Buffalo at Gross Shuman Brizdle & Gilfillan, those are the major problems that will come up with estate taxes irrespective of the final decision.

Calculate the federal tax owing by the estate assuming that the first year-end is as late as is possible and that tax rates and credit bases remain at the 2014 level.

Parent Corporation owns 85% of the common stock and 100% of the preferred stock of Subsidiary Corporation. The common stock and preferred stock have adjusted bases of $500,000 and $200,000, respectively, to Parent. Subsidiary adopts a plan of liquidation on July 3 of the current year, when its assets have a $1 million FMV. Liabilities on that date amount to $850,000. On November 9, Subsidiary pays off its creditors and distributes $150,000 to Parent with respect to its preferred stock. No cash remain to be aid to Parent with respect to the remaining $50,000 of its liquidation preference for the preferred stock, or with respect to any common stock. In each of Subsidiary’s tax years, less than %10 of its gross

Decedent made a transfer within 3 years of death. Under Section 2035(a), nothing is included in Decedent’s gross estate, because it’s a cash gift. However, under Section 2035(b), the amount of the gross estate shall be increased by the amount of any tax paid on any gift made by the decedent during the 3-year period ending on the date of the decedent’s death. So the amount of gift tax of this gift the decedent paid is included in his gross estate.

Pursuant to your request, we have enclosed a copy of the J. David Drielsma and Rosann Drielsma 1996 Revocable Trust dated January 12, 1996, as amended. I have enclosed a copy of the Allocation Agreement for the J. David Drielsma and Rosann Drielsma 1996 Revocable Trust. Both the revocable Survivor’s Trust and the irrevocable Bypass Trust have been funded pursuant to the Allocation Agreement.

Part V: Discuss how income and distributions may/will be allocated to Penelope, Mark and John. Profits are shared equally or by percentage ownership if that is how you divide the company ownership.

Furthermore, it was asserted that Ms. Hodges was not engaged in the business of investing, renting, or offering to rent property until March 2011. The taxpayer is not carrying on a trade or business under section §162(a) until the business is functioning as a

Kathy and Brett Ouray were married in 1996. In 2014, they consider themselves completely estranged. Due to financial reasons they have decided to not get a divorce or live separately. They also do not have any legal documentation of separation and neither of them has lived outside the home for a significant amount of time. They currently reside together with their three children. They have decided that Brett has contributed more to the upkeep of their home and children than Kathy. They have also decided to file separately. Brett believes he is eligible to file for head-of-household.

Normally, the “Will” validly applies to Alvin’s both personal and real property in creating a testamentary trust which takes effect after his death. Unless otherwise, the state may consider other successor executor such as family members or a disinterested

to be taxed to pay the retirement income of elders (Halstead and Lind 79). Now in the

This is due to the fact that "distribution may be withheld pending resolution of a lawsuit against the estate, or where there is a contest over beneficiaries' rights under the will." For Brown's estate, it does not appear that anyone will be receiving what was left to them any time soon, especially when considering the fact that the litigation over how his estate should be distributed continues to this day.

However, the estate attorney can help you minimize the impact of those taxes on the assets that you are leaving to your beneficiaries through the use of trusts that are not subjected to estate taxes if you create an irrevocable trust. An irrevocable trust is basically a trust fund that once you put the money into the trust, you are no longer able to access it or withdraw any funds from it, that is left up to the individual managing the trust and the beneficiary of the trust. Since the money technically no longer belongs to you, it is not going to be taxed by the government when you pass away.

For my research synthesis assignment I decided to research the estate tax. I chose this as my topic because as an economics major I am always very interested in topics that effect the economy on a large scale. Although I love these topics, I have done many papers in this field and have found that I covered many mainstream economic topics including housing, taxation, banking, and trade and wealth distribution throughout my many years at Radford University. To try to present and research something new and unique to me however I landed on analyzing and making an informed argument on a policy that people know very little about but has huge effects on the United States economy and have been relevant recently. This is the estate tax.

The estate tax is a tax upon your right to transfer property at the time of your death. It is often called the death tax and it has been a partisan point of disagreement for quite some time. As the tax only applies to estates of $5.45 million and over, this tax only applies to the wealthy. Enacted in 1916 to help finance World War I, the estate tax has come under more scrutiny lately because of our government’s financial situation and the one-hundredth anniversary (Caron 825). The intellectual world is divided on whether to repeal, reform, or keep unchanged the estate tax. Some even argue that transfers of wealth should not be taxed at all. This essay will contend that the current estate tax should be replaced with a lifetime accessions tax to encourage donors, reduce concentrations of wealth, and safeguard equality of opportunity. Before arguing for the lifetime accessions tax, this paper will outline the history of the estate tax, the purposes of taxing wealth transfers, and compare the lifetime accessions tax to other proposed alternatives.

The federal and state governments provide the American citizens with all of the basic necessities within our communities and society that is taken for granted. Programs responsible for assistance in times of need, providing a quality standard of living, and maintaining the strongest military in the world costs incomprehensible amounts of money and could never exist without taxes from the American people. Taxes are payments made by individuals and businesses to support the government and its services. The constitution grants that congress “shall have the power to lay and collect taxes, duties, imposts, and excises and to pay the debts and provide for the common defense and general welfare of the people”. Taxes paid by Americans redistribute