Chapter 9, Problem 5FPC

Your client wants to purchase a residence for his aging parents, while minimizing the burden of ownership of the property for them and maximizing their enjoyment of it. Which one of the following states an advantage of titling the property in your client's name as sole owner rather than in joint tenancy with right of survivorship with his parents?     A) The property will receive a step-up in basis when his parents die.     B) The property will pass to his parents outside of probate.     C) He will avoid gift tax liability by titling the property this way.     D) His parents will have a life estate in the property if he predeceases them.

Niño is very much interested in buying Jasper’s business, but Jasper is not open to the idea of selling his business. Since Niño is used to getting what he wants, he threatened Jasper that he has connections with the Department of Trade and Industry (DTI) and he can have Jasper’s business closed. Out of fear, Jasper sold his business to Niño. What should Jasper do to get back the business? What should be the basis of his remedy?

Luke is currently facing some financial difficulties, however, Luke owned land and building valued at $12 million dollars. Lorna, a good friend and skilled investment analyst is advising Luke to sell his house and invest the money otherwise e.g. in securities. This means he would be much wealthier taking such an action. Before taking the decision to sell his property and to start living in a rented house , Luke has decided to consult with you to present to him, strong arguments to support the idea of selling his property. Required Give Luke your advice from an investment perspective. N.b just 5 salient points explained nothing else.

Luke is currently facing some financial difficulties, however, Luke owned land and building valued at $12 million dollars. Lorna, a good friend and skilled investment analyst is advising Luke to sell his house and invest the money otherwise e.g. in securities. This means he would be much wealthier taking such an action. Before taking the decision to sell his property and to start living in a rented house , Luke has decided to consult with you to present to him, strong arguments to support the idea of selling his property. Required Give Luke your advice from an investment perspective.

Phil Dunphy, a real estate agent, is considering whether he should list an unusual $902,958 house for sale.  If he lists it, he will need to spend $3,668 in advertising, staging, and fresh cookies.  The current owner has given Phil 6 months to sell the house.  If he sells it, he will receive a commission of $21,270.  If he is unable to sell the house, he will lose the listing and his expenses.  Phil estimates the probability of selling this house in 6 months to be 44%.  What is the expected profit on this listing?

Here is my situation.  I currently own a heating and cooling business here in Indianapolis.  I'm thinking about opening one in Sarasota, Florida.  My plan is to work in both places.  My wife and I currently rent a condominium here in Indy and we plan on renting one in Sarasota.  Of course, I would be in Florida when the weather is bad here.  What will I be able to write off if I live and work in both places?  I would like to deduct all of the costs (rent, transportation to and from, meals, etc.).  What IRS Code sections, Treasury Regulations, or Court cases would you refer to? What additional information would you need to determine if or what extent these costs could be deducted?

Here is my situation.  I currently own a heating and cooling business here in Indianapolis.  I'm thinking about opening one in Sarasota, Florida.  My plan is to work in both places.  My wife and I currently rent a condominium here in Indy and we plan on renting one in Sarasota.  Of course, I would be in Florida when the weather is bad here.  What will I be able to write off if I live and work in both places?  I would like to deduct all of the costs (rent, transportation to and from, meals, etc.). Explain to me about Facts Issue Analysis Conclusion??

Use the following information. When "trading up," it is preferable to sell your old house before buying your new house because that allows you to use the proceeds from selling your old house to buy your new house. When circumstances do not allow this, the homeowner can take out a bridge loan.Tina and Mike have sold their house, but they will not get the proceeds from the sale for an estimated 3 months. The owner of the house they want to buy will not hold the house that long. Tina and Mike have two choices: let their dream house go or take out a bridge loan. The bridge loan would be for $88,000, at 8.5% simple interest, due in 90 days. (Round your answers to the nearest cent.) (a) How big of a check would they have to write in 90 days?$ (b) How much interest would they pay for this loan?

A friend of the family believes that depreciation provides him with a reserve to purchase new assets. His secretary has blown up his computer, but he knows he has the funds to replace it in the accumulated depreciation account. You know he is wrong and have grown tired of listening to him going on about it, but he won’t listen to what you have to say. You decide to put him out of his misery by writing a letter to him about it that he may actually read before he realises that it is telling him things he does not want to hear. Write him a letter, using fictitious names and addresses, which defines depreciation and explains why his view is incorrect.