Taxpayer Xi is able to make a present interest cash gift up to $16,000 to a donee
Question:
Taxpayer Xi is able to make a present interest cash gift up to $16,000 to a donee (someone who receives the gift/beneficiary) in 2022 without having to file a tax return. The amount up to $16,000 is not included as a taxable gift under what principle?
| a. | The Unified Credit | |
| b. | The Annual Exclusion | |
| c. | The Assignment of Income Doctrine | |
| d. | The Exemption Equivalent |
Len and Ken are married and file a joint return with an AGI of $140,000. They have three dependent children ages 5, 9, and 17 (ages at the end of 2021). With respect to their children, what amount, if any, of Child Tax Credit and/or Dependent credit can Len and Ken apply to their return?
| a. | $9,000 | |
| b. | $9,600 | |
| c. | $4,500 | |
| d. | $6,500 |
In December 2021, Shannon (a single taxpayer) sold 200 shares of CH Inc. (not section 1202 stock), which she had owned for 15 months, for $1,130. Shannon’s basis in these shares was $520. How much is her gain and what is the maximum tax rate she will pay on this gain? Shannon has no other transactions and has taxable income (including this transaction) of $22,000. NOTE: For a single taxpayer, ordinary income is taxed at 10% for the first $9,950 and 12% from an amount above $9,700 but not over $40,525. For capital gains, see attached capital gains tax bracket chart at exam instructions.
| a. | $1,130 and 35% | |
| b. | $610 and 0% | |
| c. | $610 and 18.8% | |
| d. | $610 and 15% | |
| e. | $1,130 and 0% |
Expert Answer:
Question 1 The exemption equivalents Explanation The first 16000 that an individual gives another in... View the full answer
