At the time of her death on October 4, 2016, Kaitlyn was involved in the following transactions. ∙ Was the sole life beneficiary of a trust (assets worth $2 million) created 10 years ago by Paul (Kaitlyn’s husband). The transfer was by gift of securities then worth $500,000 (Paul did not make a QTIP election). Paul and Kaitlyn’s children are the remainder persons. Owned stock in Mauve Corporation (basis of $800,000 and fair market value of $1 million). On September 7, 2016, a dividend of $48,000 was declared on the stock payable to all shareholders on record as of October 3, 2016. The $48,000 was received by Kaitlyn’s executor on October 19, 2016. ∙ Kaitlyn made a taxable gift of $400,000 in 2004. As to these transactions, Kaitlyn’s gross estate includes:

Paul sold 200 shares of C Corporation stock on September 3, 2018, for $42 a share. He received the stock from his father on June 25, 1980, as an inheritance. His father originally purchased the stock for $10 per share in 1967. The stock was valued at $14.50 per share on the date of inheritance. How to compute Paul's capital gain for tax return.

(please give correct answer).

vi.3

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. a. Ken won $1,540 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,340 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. c. Ken received $28,400 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $238,560. d. Ken received $13,850 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $840 cash scholarship to attend. He used $470 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's son, Mike,…

Randy established a trust, reserving in himself the power to terminate the trust if he is not satisfied with its operation. After two years, the power to terminate the trust expires. Randy transferred commercial real estate into the trust and specified that the income be payable annually for the benefit of his adult daughter, Michelle. Randy died one year after creation of the trust instrument. One estate tax implication for Randy of this trust is that the trust property is     A) included in his estate because a family member is receiving a benefit from the trust.     B) not included in his estate because a transfer for the benefit of a minor is exempt from tax.     C) included in Randy's estate because he still had the power to terminate the trust at his death.     D) not included in his estate because the power to terminate the trust eventually expires.

Deirdre sold 146 shares of stock to her brother, James, for $4,380. Deirdre purchased the stock several years ago for $5,986. What amount of gain or loss does James recognize if he sells the stock for $5,256 and $4234 respectively?

Andy, 68, has a gross estate currently valued at $2,500,000 that consists primarily of highly appreciated growth securities. Within the last six months, Andy transferred $500,000 worth of these securities to his wife, Harriet. His cost in these securities was $200,000. Harriet recently died. The fair market value of the transferred securities at the time of her death was $500,000. The securities passed to Andy under the terms of Harriet's will. Which one of the following is an income tax implication of the transfer of stock? A) Andy must recognize $300,000 in capital gain on the stock as of Harriet's death.     B) If Andy sells the stock he received from Harriet immediately after her death, his gain, if any, will be deemed to be short-term capital gain.     C) Andy's basis in the stock is $200,000.     D) Andy's basis in the stock is $500,000.