1. nancy gives her grandson, sean, 20 acres of land. Her tax basis in the land is $25,000. nancy's marginal tax rate for the current year is 45%; her grandson's is 25%. Its fair market value was $575,000 at the date of the transfer. If the gift tax rate is 40% and she has never made a gift in excess of $10,000 before this, what amount of gift tax will she pay? What is their net tax savings percentage as a family unit if sean sells the land?

2. tom and judy bell, who file jointly, collected $6,000 in social security benefits, $18,000 in fully taxable pension payments, and $10,000 in tax-exempt interest. How much of their social security is included in gross income? How would this change if they had received $20,000 in tax-exempt interest?

Answer rating: 100% (QA)

1 Tax on gift will she pay 57500025000 45 247500 answer As receives it as a gift would have a gain o... View the full answer