Dieter won the lottery this year, which means that he will receive $ 400,000 per year for the next 30 years. The present value of Dieter’s prize is about $ 3.75 million. Conscious of the tax benefits of income shifting, Dieter irrevocably assigned one-fifth of every annuity payment to his daughter Heidi. What are the effects of these events on Dieter’s taxable income?
Answer to relevant QuestionsAce High and Lady Luck live together and have pooled their funds for several months to purchase food and other household necessities and to buy an occasional state lottery ticket. Ace used part of these pooled funds to buy a ...The Pima and Southern Railroad (PSRR) is a small railroad operating in rural Arizona. It exists by carrying freight to remote areas of the southwest. This year the PSRR needs to replace a 30-mile section of its track. The ...David Dental, DDS, and his unmarried partner Sally Surgeon, MD have lived together for the past five years. Both are at the peak of their careers and decide to buy a new “show case” home in La Jolla, California. After ...What is a revenue ruling? What is a determination letter? Which office of the IRS issues determination letters? What kinds of issues are addressed therein?
Post your question