PRINCIPLES OF TAXATION F/BUS.+INVEST.
22nd Edition
ISBN: 9781259917097
Author: Jones
Publisher: MCG
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Chapter 14, Problem 6IRP
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Identify the tax issues and state the issues in the form of a question.
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Paul, age 40 and single, has an 8-year-old son, Larry. Larry resides with his mother, Susan, in her home.
Pursuant to the terms of their divorce, Paul properly claims Larry as a dependent on his income tax
return. Paul pays child support payments to his ex-wife for the support of his child. Susan does not claim
Larry as her dependent, but she does bear the economic burden of supporting the household in which
they reside. What is the maximum amount of the 2020 standard deduction that Susan qualifies for?
Oa. $12,400
Оb. S18,650
Oc. $20,300
а.
Od. $24,800
Oe. Susan does not qualify for claiming a standard deduction.
е.
Leon has a gross estate estimated at $14.3 million. He is not married but does have two adult children who he wants to receive all of his estate. Leon is the sole owner of income-producing real estate valued at $900,000. He currently depends on the income produced by this real estate to maintain his standard of living. However, Leon is certain that when he retires in 10 years, at age 65, he will no longer need this income due to a generous income from a defined benefit retirement plan. Leon's financial planner has told Leon that his estate could face a severe liquidity crisis if in retirement.
In which one of the following trusts would it be best for Leon to place his income-producing property in order to improve his estate's liquidity position in retirement?
A)A revocable trust to last for Leon’s lifetime, with all trust assets to be distributed to his children at his death
B)An irrevocable trust to last for 10 years that will annually pay Leon income at the trustee’s…
At age 65, Carlota’s financial position was better than her health. She had a large balance in an IRA that she wanted to move to a different IRA. Carlota withdrew $100,000 from the IRA and planned to roll over the funds into another IRA. Unfortunately, she died before completing the rollover. Carlota’s son, Andres, discovered what his mother had done a week after her death. Andres was both executor of Carlota’s estate and beneficiary of her IRA. Can Andres, in his role as executor, complete the rollover for his deceased mother by depositing the $100,000 in another IRA within the 60-day rollover period?
a. Locate the IRS pronouncement(s) that deals with this situation. State the pronouncement number(s).
b. Review the IRS pronouncement(s). Does it raise a need for new information to solve this question?
c. Are you able to reach a conclusion about the research question from this IRS pronouncement(s)? If so, what is your conclusion(s)?
Chapter 14 Solutions
PRINCIPLES OF TAXATION F/BUS.+INVEST.
Ch. 14 - Prob. 1QPDCh. 14 - Prob. 2QPDCh. 14 - Why is the formula for computing individual...Ch. 14 - Discuss possible tax policy reasons why...Ch. 14 - Prob. 5QPDCh. 14 - Identify the reasons why individual taxpayers...Ch. 14 - Prob. 7QPDCh. 14 - Individuals who plan to bunch itemized deductions...Ch. 14 - Prob. 9QPDCh. 14 - Single individuals Sam and Zelle were married this...
Ch. 14 - Prob. 11QPDCh. 14 - Under the current rate structure, a high-income...Ch. 14 - Prob. 13QPDCh. 14 - Prob. 14QPDCh. 14 - Prob. 15QPDCh. 14 - Prob. 16QPDCh. 14 - Prob. 1APCh. 14 - Prob. 2APCh. 14 - Prob. 3APCh. 14 - Prob. 4APCh. 14 - Prob. 5APCh. 14 - Prob. 6APCh. 14 - Prob. 7APCh. 14 - Prob. 8APCh. 14 - Prob. 9APCh. 14 - Prob. 10APCh. 14 - Prob. 11APCh. 14 - Prob. 12APCh. 14 - Prob. 13APCh. 14 - Prob. 14APCh. 14 - Prob. 15APCh. 14 - Prob. 16APCh. 14 - Prob. 17APCh. 14 - Prob. 18APCh. 14 - Prob. 19APCh. 14 - Prob. 20APCh. 14 - Prob. 21APCh. 14 - Prob. 22APCh. 14 - Prob. 23APCh. 14 - Prob. 24APCh. 14 - Prob. 25APCh. 14 - Prob. 26APCh. 14 - Prob. 27APCh. 14 - Prob. 28APCh. 14 - Prob. 29APCh. 14 - Prob. 30APCh. 14 - Prob. 31APCh. 14 - Prob. 32APCh. 14 - Prob. 33APCh. 14 - Prob. 34APCh. 14 - Prob. 35APCh. 14 - Prob. 1IRPCh. 14 - Prob. 2IRPCh. 14 - Prob. 3IRPCh. 14 - Mr. Tilton is a 20-year-old college student. This...Ch. 14 - Prob. 5IRPCh. 14 - Prob. 6IRPCh. 14 - Prob. 7IRPCh. 14 - Prob. 8IRPCh. 14 - Prob. 9IRPCh. 14 - Prob. 10IRPCh. 14 - Mr. and Mrs. Marceleno own a sole proprietorship...Ch. 14 - Prob. 12IRPCh. 14 - Prob. 1RPCh. 14 - Prob. 2RPCh. 14 - Prob. 1TPCCh. 14 - Prob. 2TPC
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