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- 1. ACC 547 Final Exam Guide For more classes visit www.snaptutorial.com 1. In 2016, Sayers, who is single, gave an outright gift of $50,000 to a friend, Johnson, who needed the money to pay medical expenses. In filing the 2016 gift tax return, Sayers was entitled to a maximum exclusion of 2. On July 1, 2016, Vega made a transfer by gift in an amount sufficient to require the filing of a gift tax return. Vega was still alive in 2016. If Vega did not request an extension of time for filing the 2016 gift tax return, the due date for filing was 3. Under the unified rate schedule, 4. During the current year, Mann, an unmarried U.S. citizen, made a $5,000 cash gift to an only child and also paid $25,000 in tuition expenses directly to a grandchild's university on the grandchild's behalf. Mann made no other lifetime transfers. Assume that the gift tax annual exclusion is $14,000. For gift tax purposes, what was Mann's taxable gift? 5. George and Suzanne have been married for 40 years. Suzanne inherited $1,000,000 from her mother. Assume that the annual gift-tax exclusion is $14,000. What amount of the $1,000,000 can Suzanne give to George without incurring a gift-tax liability? 6. Which of the following payments would require the donor to file a gift tax return?
- 2. 7. The answer to each of the following questions would be relevant in determining whether a tuition payment made on behalf of another individual is excludible for gift tax purposes, EXCEPT: 8. When Jim and Nina became engaged in April 2016, Jim gave Nina a ring that had a fair market value of $50,000. After their wedding in July 2016, Jim gave Nina $75,000 in cash so that Nina could have her own bank account. Both Jim and Nina are U.S. citizens. What was the amount of Jim's 2016 marital deduction? 9. Jan, an unmarried individual, gave the following outright gifts in 2016: 10. Which one of the following is a valid deduction from a decedent's gross estate? 11. Which of the following credits may be offset against the gross estate tax to determine the net estate tax of a U.S. citizen? 12. Under which of the following circumstances is trust property with an independent trustee includible in the grantor's gross estate? 13. Bell, a cash basis calendar year taxpayer, died on June 1, 2016. In 2016, prior to her death, Bell incurred $2,000 in medical expenses. The executor of the estate paid the medical expenses, which were a claim against the estate, on July 1, 2016. If the executor files the appropriate waiver, the medical expenses are deductible on 14. Within how many months after the date of a decedent's death is the federal estate tax return (Form 706) due if no extension of time for filing is granted? 15. The generation-skipping transfer tax is imposed 16. Fred and Amy Kehl, both U.S. citizens, are married. All of their real and personal property is owned by them as tenants by the entirety or as joint tenants with right of survivorship. The gross estate of the first spouse to die 17. What is the due date of a federal estate tax return (Form 706), for a taxpayer who died on May 15, year 2, assuming that a request for an extension of time is not filed? 18. In connection with a "buy-sell" agreement funded by a cross- purchase insurance arrangement, business associate Adam bought a policy on Burr's life to finance the purchase of Burr's interest. Adam,
- 3. the beneficiary, paid the premiums and retained all incidents of ownership. On the death of Burr, the insurance proceeds will be 19. The federal estate tax may not be reduced by a credit of 20. Ordinary and necessary administration expenses of an estate are deductible: 21. H and W are married citizens. All of their real and personal property is owned as tenants by the entirety or as joint tenants with right of survivorship. The gross estate of the first spouse to die: 22. Under the provisions of a decedent's will, the estate's executor made the following cash disbursements: I. A charitable bequest to the American Red Cross. II. Payment of the decedent's funeral expenses. What deduction(s) is(are) allowable in determining the decedent's taxable estate? 23. Which of the following items of property would be included in the gross estate of a decedent who died in 2016? 24. If the executor of a decedent's estate elects the alternate valuation date and none of the property included in the gross estate has been sold or distributed, the estate assets must be valued as of how many months after the decedent's death? ********************************************** ACC 547 Week 1 Tax Research Paper For more classes visit www.snaptutorial.com
- 4. Review two sources that discuss the different types of tax authority (specifically primary and secondary sources). Createa 700- to 1,050-word (at least meet the minimum words) document that addresses the following: What are the two different categories of tax research (open and closed transactions)? Of the two known sources, primary & secondary, which has more authority ? Explain your answer. Give three examples of primary and secondary sources, discuss where you can find the sources, whether they are paid or free sources, and what kind of information you will find about a given tax situation. ********************************************** ACC 547 Week 2 Getting Personal For more classes visit www.snaptutorial.com Introduction Gross Income Above the Line Deductions Itemize Deductions Personal Exemptions Taxable Income
- 5. Tax Credits Conclusion ********************************************** ACC 547 Week 3 Comprehensive Problem Machines Inc For more classes visit www.snaptutorial.com Comprehensive Problem for Chapters 7 and 8. Sam Johnson started a small machine shop, Machines, Inc., in his garage and incorporated it in March of 2013 as a calendar-year corporation. At that time, he began using his personal computer and tools solely for the business as part of his contribution to the corporation. The computer cost $2,700 but had a fair market value of only $900 at conversion and the tools, which had cost $1,500, were valued at $1,100. During 2013, Machines, Inc. purchased two machines: Machine A, purchased on May 2, cost $24,000;Machine B, purchased on June 5, cost $40,000. The corporation expensed Machine A under Section 179. The computer, tools, and Machine B were depreciated using accelerated MACRS only. The corporation did not take any depreciation on the garage nor did Sam charge the business rent because the business moved to a building the business purchased for $125,000 on January 5, 2014. On January 20, 2014, Machines purchased $4,000 of office furniture and on July 7, it purchased Machine C for $48,000. It depreciated these assets under MACRS (including allowable bonus depreciation), but did not use Section 179 expensing. Machines acquired no new assets in 2015.
- 6. On February 4, 2016, Machines bought a new computer system for $5,100. It sold the old computer the same day for $300. On March 15, it sold Machine A for $6,000 and purchased a more versatile machine for $58,000. On August 15, Machines sold bonds it had purchased with $9,800 of the cash Sam had originally contributed to the corporation for $10,400 to pay creditors. The business takes only the maximum allowable MACRS depreciation deduction on assets purchased in 2016 with no Section 179 expensing or bonus depreciation. Determine Machines, Inc.'s depreciation expense deductions for 2013 through 2016. Determine the realized and recognized gains or losses on the property transactions in 2016. ********************************************** ACC 547 Week 4 Jordan and Diana Diego (Score 85%) For more classes visit www.snaptutorial.com Jordan (SSN 150-66-7788)and Diana (SSN 150-67-4321)Diego are a married couple who reside at 111 Coral Drive in Miami, FL 33156. They have one dependent daughter, Emily (SSN 155-88-4321), age 18, who lives at home.
- 7. Jordan is a manager at Big Box Corporation. His Form W-2 wages are $68,000 and federal income tax withheld is $8,300. The correct payroll taxes were withheld. Diana worked at a local department store for the first half of the year. Her Form W-2 wages are $40,000 and federal income tax is $3,300. The correct payroll taxes were also withheld. The Diego family paid $9,200 interest on their home mortgage (reported to them by the mortgage company on Form 1098). The Diego family also owns a vacation home in Breckenridge, Colorado, for which they paid $4,100 of mortgage interest. (This is qualified mortgage interest for a second home.) The Diego family paid real estate taxes on their principal residence of $3,400, $2,000 of real estate taxes on their vacation home and $3,200 of sales taxes during the year. The vacation home in Breckenridge was rented out for 120 days during the year for which they received $12,000 in rental income. Jordan and Diana made significant decisions such as approving new tenants while a local management company handled the day-to-day needs. The Diego family used it for 30 days for a personal vacation during the year. Other expenses for the year for this vacation home (excluding interest and taxes mentioned above) were: $700 for real estate management fees paid to a local agent who handles the rental of the property, insurance expense $2,200, repairs expense $500, and utilities expense $1,800. Their depreciation expense for the rental use of this property for the year is $1,455. They use the IRS formula for allocating interest and taxes. The Diego family contributed $3,000 cash to their church and they have the necessary documentation for this contribution. Jordan had the following employment-related expenses that were not reimbursed by his employer: Jordan drove his BMW (which he purchased four years ago on November 18) a total of 12,000 miles during the year. He drove 4,800 miles while conducting business during the first half of the year. In July, the firm purchased several hybrid autos that the architects were then required to use for all business travel rather than their personal autos. These autos were kept at the firm's offices. Jordan used his
- 8. personal auto for the three-mile commute to his office, a total of 1,500 miles for the entire year. Jordan attended work-related conference in Los Angeles. He paid a registration fee of $400 and incurred costs of $450 for transportation, $625 for lodging, and $260 for meals. He was not reimbursed for these expenses. In August, Diana quit her job and began a consulting business. The business code is 541990. She is operating the business under her own name and rented a small office at 1234 Coral Way, Coral Gables, FL 33146. Since Diana began her business so late in the year, her consulting income was only $8,000. She incurred the following expenses: $475 supplies, $210 telephone, $3,200 office rent, and $325 advertising. In addition, Diana drove her two-year old Lexus on business 750 miles to visit prospective and current clients. This car was also driven 7,000 miles for personal use. She materially participated in the business and did not make any payments that would require filing Form 1099. Jordan was born on April 1, 1975; Diana was born May 1, 1976. They have health insurance for the entire family through Jordan's employer. They have no foreign accounts. Based on the information presented above, prepare a Form 1040 (married filing jointly), Schedule A, Schedule C (or C-EZ), Schedule E, and Schedule SE using the forms available on the IRS Web site at www.irs.gov. ********************************************** ACC 547 Week 5 Sales and Use Tax For more classes visit www.snaptutorial.com
- 9. Sales and Use Tax: What is the Solution? Introduction Sales and Use Tax Laws Should There Be a Federal Sales and Use Tax System? Conclusion ********************************************** ACC 547 Week 6 Godfreys Assets For more classes visit www.snaptutorial.com When Godfrey died in 2016, his assets were valued as follows: Asset Date of death valuation Valuation six months later Stocks $2,220,000 $2,180,000 Bonds 4,600,000 4,620,000 Home 800,000 780,000 Total $7,620,000 $7,580,000 The executor sold the stock two months after the decedent's death for $2,200,000. The bonds were sold seven months after the decedent's death for $4,630,000.What valuation should be used for the gross estate? Prepare a 350- to 700-word document that addresses and includes the amount of taxable estate for each of the following: Address the question at the end of the scenario.
- 10. If Godfrey came to you before his death and told you that he had a spouse and two children under the age of 18, what kind of estate plan would you suggest for him? What if Godfrey had no spouse but had two children under the age of 18? What if Godfrey had no spouse or children, but had a favorite niece? **********************************************