Felipe will incur a $1 million Federal transfer tax when he passes a plot of land to

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Felipe will incur a $1 million Federal transfer tax when he passes a plot of land to Barbara, an unrelated friend. Felipe's after-tax rate of return on his real estate investments is 3%. Compute the present value of the transfer tax if:
a. Felipe transfers the land to Barbara as a lifetime gift today.
b. Felipe transfers the land to Barbara through his will after his death 20 years from now.
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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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