In 2000 murray and pearl acquire real estate for

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134. In 2000, Murray and Pearl acquire real estate for $900,000, with Murray furnishing $300,000 of the purchase price and Pearl providing the balance. Title to the property is listed as: “Murray and Pearl, equal tenants in common.” Murray dies first in 2009, when the real estate is worth $3,000,000. a. Were there any tax consequences in 2000? Explain. b. How much, as to the real estate, is included in Murray’s gross estate? c. As to parts a. and b., would it make any difference whether Murray and Pearl are brother and sister orhusband and wife? 135. Jordan owns an insurance policy on the life of his father, Milton. Upon Milton’s death, the policy proceeds of $1,000,000 are paid to the designated beneficiary, Kinsey. What are the tax consequences resulting from Milton’s death based on the following assumptions? a. Kinsey is Jordan’s daughter. b. Kinsey is Jordan’s wife. c. What are the tax consequences if Jordan dies first (i.e., predeceases both Kinsey and Milton)? 136. At the time of her death in 2009, Jennifer owns property worth $4,500,000. Other information regarding her affairs is as follows. Unpaid pledge to the building fund of her church $100,000 College graduation gift she had promised her niece 10,000 State death taxes owed 200,000 Casualty loss to uninsured vacation home (fire occurred one month before death) 300,000 Mortgage owed on personal residence 600,000
All of these items (except the casualty loss) were paid by her estate and none were deducted on Form 1041 (income tax return of the estate). What is Jennifer’s taxable estate?137. At the time of Cal’s death in 2009, part of his estate consists of the following. · Traditional IRA (value of $900,000) with Kim as the designated beneficiary. · Land (worth $2,000,000) held in joint tenancy with Kim. Kim is Cal’s wife and originally furnished the purchase price. · Building (worth $3,000,000) held as equal tenants in common with Dana. Dana is Cal’s mother, and she originally purchased the property. Under Cal’s will, all of his property passes to his wife, Kim. How much marital deduction is Cal’s estate allowed?138. Bernard’s will passes $800,000 of cash to his widowed sister, Marie. The estate tax attributable to the cash is $120,000. Marie dies five years later, and the estate tax generated by the $800,000 is $140,000. How much of a credit for tax on prior transfers will Marie’s estate be allowed?
139. As reflected by the tax law, Congressional policy relative to the Federal gift and estate taxes has been very inconsistent. Comment on this policy regarding the following time periods. a. From original enactment of these taxes up to the Tax Reform Act of 1976. b. From the Tax Reform Act of 1976 to the Tax Relief Reconciliation Act of 2001. c. From the Tax Relief Reconciliation Act of 2001 onward. 140. The Federal gift and estate taxes were restructured in 1976 into the unified transfer tax. The objective of the change was to eliminate the tax difference between transfers during life (gift tax) and at death (estate tax). Does this uniformity of treatment currently exist? In this regard, comment on the following differences between the two taxes. a. Applicable unified transfer tax credit. b. Applicable unified transfer tax rates. c. Availability of the charitable and marital deductions. d. Availability of the annual exclusion.

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