C 12 21 Phil and Marcy have been married for a number of years Marcy is very

C 12 21 phil and marcy have been married for a number

This preview shows page 5 - 7 out of 25 pages.

C 12-21Phil and Marcy have been married for a number of years. Marcy is very wealthy, but Phil is not. fact, Phil, who has only $10,000 of property, is very ill, and his doctor believes that he probably will diewithin the next few months. Make one (or more) tax planning suggestions for the couple. Assume theyear is 2016 and that Phil may die in 2016. In
In C 12-22Assume the same facts as in Problem C 12-21 and that Marcy has decided to give Phil property valued at %5.44 million. Phil probably will leave the gifted property to their children under his will.A.What are the gift tax consequences to Marcy and the estate tax consequences to Phil of the transfer (assuming the property does not appreciate before his death.)?B.Assume Marcy is trying to decide whether to give Phil stock with an adjusted basis of $1,285,000 or land with an adjusted basis of $2.8 million. Each asset is valued at $5.44 million.Which asset would you recommend she give and why? C 12-23Carlos has heard about the unified transfer tax credit system and does not understand how making gifts can be beneficial. Explain to Carlos how a lifetime gift fixes (freezes) the gifted property’s value for transfer tax purposes.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture