Bob and Vikki are a married couple with $250,000 in assets. $100,000 of their assets were inherited by Vikki during the marriage when her uncle died. They live in Nevada, which is a community-property state. How much of their assets is considered to be community property?
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- Cody and Chelsi, who are married to each other, own their home together titled as community property. They purchased the home three years ago for $200,000. After improvements and a surge in the market, the home is now worth $400,000. If Cody died today and left his share of the home to his daughter Alyssa, what is Alyssa's federal income tax basis in the home? a. $50,000. b. $100,000. c. $150,000. d. $200,000.Darleen and Leon live in Arizona and acquired all of their property interests while living there. They own a primary residence worth $2.2 million as tenants by the entirety. The couple owns a condo near a Colorado ski resort worth $800,000. Mortgages on the two homes equal $600,000. Darleen inherited money from her father which she deposited in a separate account. She used this money to acquire commercial property for an art gallery. The FMV of the commercial property is $1 million and has a mortgage of $400,000. Assume that Darleen died today. What is the value of her adjusted gross estate? Show your work.In a community property state, John marries Patricia prior to marriage John owned an SUV during the marriage John bought a Buick. John and Patricia bought a second property with money earned from Patricia's job. Each individual received a motorcycle from Patricia's uncle as a gift. What is community property in this marraige?
- Siblings William and Harry own a castle as Joint Tenants with Rights of Survivorship. William contributed $200,000 and Harry contributed $10,000 many years ago to purchase the farm land. The farm is currently valued at $2,000,000. : What are William and Harry’s ownership interests in the farm land? : If Harry died today, what amount of the value of the farm land would be included in his gross estate?Jack and Liz live in a community-property state and their vacation home is community property. This year they transferred the vacation home to an irrevocable trust that provides their son, Tom, a life estate in the home and the remainder to their daughter, Laura. Under the terms of the trust, Tom has the right to use the vacation home for the duration of his life, and Laura will automatically own the property after Tom's death. At the time of the gift, the home was valued at $500,000, Tom was 35 years old, and the 57520 rate was 5.4 percent. Use discount tables Exhibit 25-4, Required: a. What is the amount, if any, of the taxable gifts? b. Would your answer be different if the home was not community property and Jack and Liz elected to gift-spilt? Complete this question by entering your answers in the tabs below. Required A Required B What is the amount, if any, of the taxable gifts? Taxable gift to Laura by each Trocable gift to Tom by each Amount $ 33,520 $ 27,000 Required>Helene and Pauline are twin sisters who live in Louisiana and Mississippi, respectively. Helene is married to Frank, and Pauline is married to Richard. Frank and Richard are killed in an auto accident in 2020 while returning from a sporting event. Helene and Frank jointly owned some farmland in Louisiana, a community property state (value of $940,000, cost of $450,000). Pauline and Richard jointly owned some farmland in Mississippi, a common law state (value of $940,000, cost of $450,000). Assume that all of Frank's and Richard's property passes to their surviving wives. Louisiana is a community property state and Mississippi is a common law state.
- oberto and Deanna live in Texas, a community property state. They purchased land as community property in 1985 for $60,000, each contributing $30,000. Deanna died and bequeathed her share of the land to Roberto. The land had a fair market value of $88,000 on Deanna's date of death. What is Roberto's total adjusted basis in the land after Deanna's death? A. $88,000 B. $30,000 C. $44,000 D. $60,000Raymond and Susan are married and 55 years old. They sell their personal residence for $850,000 cash. They purchased the house fifteen years ago for $200,000. What is the amount of gain that Raymond and Susan should recognize on the sale?Sherry transfers each of the following gifts during 2023. Sherry is not married. Identify the taxable gift amount for each item (before any exclusion) Gift Stock to her favorite charity with FMV of $40,000 and basis of $20,000 Cash to her daughter of $25,000 $200,000 to an irrevocable trust to distribute annually to her granddaughter $25,000 to pay for medical expenses for her mother The amount included in Taxable Gifts
- Rami and Wendy are married, and they own a parcel of realty, Blackacre, as joint tenants with the right of survivorship. Rami owns an additional parcel of realty, Redacre, in his name alone. Suppose Rami should die when Blackacre is worth $800,000 and Redacre is worth $750,000. What value of realty would be included in Rami's probate estate, and what value would be included in Rami's gross estate? Value of realty in probate estate Value of realty in gross estateDick and Karen are married and live in a community property state. All of their property is also located in this state, except for an undeveloped parcel of land left to Dick by his uncle in a common law state. Dick and Karen have three minor children. Dick and Karen both have wills that leave everything to the survivor, and if there is no survivor, then to the children equally. Each will appoints the other spouse as personal representative (PR). Dick's brother was appointed as guardian of the minor children. Dick's brother has since died. After analyzing Dick and Karen's current estate plan for weaknesses, which one of the following statements is NOT correct? A) Their estates may be subject to their state intestacy statutes to appoint a PR in the event of simultaneous death. B) A guardianship and/or conservatorship proceeding will be necessary for the minor children. C) Dick's estate will require an ancillary probate proceeding. D) The wills are irrelevant…Paul and Marie Weir moved from a community property state to a common law property state last year. Shortly before their move, Paul used funds from the family bank account to purchase an airplane solely in his name. After they moved, Paul sold the residence that they had acquired during their marriage and used those funds to purchase a new residence of an equivalent value solely in his own name. Paul and Marie entered into a spousal agreement specifying that all household furnishings belong to Marie and the airplane belongs to Paul. Last month, Paul died. What are the estate planning implications of the Weirs' move from the community property state to a common law property state?
