Christopher has told the beneficiaries of his Roth and traditional IRAs that they will receive the distributions from these plans free of any tax. Christopher bases his advice on the “step-up” in basis that takes place when appreciated property is passed by death. Comment on the accuracy of this advice.
Answer to relevant QuestionsCynthia and Norton Enright own all of the stock in Ibis Company, an S corporation. The Enrights are considering making gifts of some of the stock to their children (Addison, Tracy, Jordan, and Kirby) to shift income to them. ...The estate of Janet, who currently is still alive, almost meets the computational requirements for an election under § 6166. Janet is not concerned about these tests, however, because she plans to give away her life ...Merle gives stock to her son Marvin. The stock has a basis to Merle of $200,000 and a value of $180,000 on the date of the gift. No gift tax was incurred on the transfer. What are Marvin’s income tax consequences if he ...Assume the same facts as in Problem 32. Dale dies four years later when the trust is worth $6.1 million. Nicole is 38, and the applicable interest rate is 4.6%. a. How much as to the trust is included in Dale’s gross ...Bill and Ellen are husband and wife with five married children and eight grandchildren. Commencing in December 2014, they would like to transfer a tract of land (worth $1,008,000) equally to their children (including ...
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