Peter Francis Postma Case Study

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken’s modified adjusted gross income for purposes of the bond interest exclusion and for determining the taxability of his Social Security benefits is $70,000 and that Ken files as a single taxpayer. Determine Ken’s 2009 gross income.

(1) Two years ago, Decedent gave Child $750,000 in cash. Decedent dies in the current year.

Lidia Quintero submitted an affidavit to affirm the power of attorney on 03-10-2017 for both clients’ George Y. Kosaka policies, VV270346 and NN020405. That was one day before Mr. Kosaka’s death. Included was a Uniform Statutory Form Power of Attorney dated 02/08/2017 appointing Ms. Quintero as the POA, which was notarized and stating that Mr. Kosaka personally appeared before Notary Public Corrie Wisner.

(3) What amount of loss is allocable to the limited partner, Dr. Ashin, in this taxable year?

However, Pete becomes enraged with Donald for using the money he gave him to invest in Webster’s “gold mine.” This decision leads to Pete stranding Donald on the side of the road without any means of survival. Pete justifies his anger towards Donald because “[he] worked for that money” and “[Donald does not] understand that. [He] has a family” (357). Pete acts as if losing one-hundred dollars will cost him a large amount in providing for his family. However, Pete most likely will continue to be able to spend countless amounts of money on a new car, a sailboat, and sky-diving. The loss of one-hundred dollars should not affect Pete’s lifestyle as drastically as he expresses. The fact that Pete is quick to react on Donalds actions and as severely as he does shows that Pete is a selfish man who is only concerned the gain and loss of

Remainder beneficiaries will not only receive their share of the assets owned at the date of death, but will also receive their share of the income generated by estate assets while the estate is being administered until its closing. For example, if the estate has $500,000 cash in an interest-bearing account, the interest earned after the date of death until the cash is distributed and the estate is closed is taxable income to the remainder beneficiary. They will receive a Schedule K-1 from the income tax return that the Estate files for the year. The income reported on the beneficiary’s Schedule K-1 should be included on the beneficiary’s Form 1040 as taxable income. It will not equal the amount of the inheritance, nor necessarily agree to any amount actually received by the

Since his death, he has received the recognition that failed to come his way during his lifetime.

Finally, the estate was at the point where I could distribute estate property. Since the beneficiaries weren’t expecting much from the estate, they were about to receive an unexpected surprise. However, I couldn’t let the excitement affect the work that still remains.

The estate tax is unique in that it is payable one time and only after the grantor is gone. The effect of the tax falls on the survivors and is not a burden while the grantor is alive. The IRS Code prevision allows a federal estate tax marital deduction, which is when a person transfers property at death to his or her surviving spouse free of federal estate tax. The deduction is available when property passes to the surviving spouse either as an outright gift in the Will or when property is left in a marital trust as a benefit for the surviving spouse. It is considered by many to be the most important estate tax saving device available. The following provides a depiction of the history of the estate tax in the US as well as the

Case B – When the asset is sold to Pardeep’s brother for $60,000, he has sold the asset for proceeds less than its fair market value (“FMV”) of $75,000. A capital gain of $25,000 will be realized and there will be taxes to be paid even though ownership of the property has stayed within the family. Mardeep’s tax cost on the asset will be $60,000.

Paul Dutton currently is employed by a company he owns a fifty percent share in, Acme Auto Parts, Inc. He has asked us to revise his current will and would like to be able to divide $50,000 of his wealth between several of his long-term employees upon his death.

Truck manufacturer, Peterbilt will be recalling more than 2,000 semi tractors due to to having greater travel speeds than its tires could handle. CNBC reported that truck models from 2009 to 2016 are the target of the recall as they can travel at 75 mph, which is faster than the 65 mph threshold of its tires. However, Peterbilt's move sparked safety concerns over the existing operational trucks on the road.

It would be wise for a taxpayer to elect a trustworthy executor as well as carefully designate your beneficiaries. In essence, estate tax is the federal governments method of imposing a tax on property when transferred to a beneficiary upon death of the owner. This tax includes but is not limited to insurance, business interests, annuities, real estate, trusts, cash, and securities (irs.gov). These assets or interests that have been accumulated up to the date of death make up what is called the Gross Estate (irs.gov). Valuation of the Gross Estate is an important aspect of the estate tax process since it is an important measurement in order to determine whether the estate qualifies to be taxed or not. The Internal Revenue Table of Basic Exclusion Amounts (See Fig. 2) shows the exclusion amounts in recent years.

1979 and was mortgaged for $38,000. He also held a $70,000 life insurance policy, payable to Mrs.

In dealings in PetroClean 's shares, chapter 11 of the Listing Rule (LR) sets out the requirements for related party transactions that an issuer with a premium listing of equity shares such as PetroClean is required to comply with once its shares have been admitted to the official list. A related party is defined by LR 11.1.4R, as a substantial shareholder, a person who is a director or shadow director of a listed company or any of their associates. Therefore, Mr Dumont, his family and the trustees of his family trust where he is a beneficiary may fall under the definition of a related party. Accordingly, as an identified related person there are disclosure obligations which must be observed in relation to dealings in PetroClean 's shares.