Gadsden, who is subject to a 40% marginal Federal gift tax rate, made a gift of a sculpture to Marvin, valuing the property at $150,000. the IRS later valued the gift at $400,000. The applicable undervaluation penalty is: a. SO D. $20,000 . $25,000 (maximum penalty)

April Ltd. is located in Alberta, a province which does not participate in the HST program and has no provincial sales tax. All of its operations are in that province. During its current quarter, April Ltd. purchases an office building and land for a total of $1300000 before GST. The Company spends an additional $266000 (before GST) on office equipment. Office equipment is capital personal property. The building will be used 20% for taxable supplies and the remainder for exempt supplies. The office equipment is to be allocated in the same ratio. For accounting purposes, the building will be amortized over 35 years, while the office equipment will be written off over 5 years. Determine the input tax credits that April Ltd. can claim as a result of these capital expenditures.

A taxpayer purchased a light truck for $27,500 in June 2021. He uses the truck 100% business .What is his first year MACRS deduction for the truck if the takes the special depreciation deduction (i.e., bonus depreciation? A. $3,160 B. $5.860 C. $10,200 D. $18,200

Ms. Zhao has $200,000 private activity municipal bond interest income from The City of Indianapolis. Ms. Zhao's only other income for the year is her $600,000 salary and Mr. Zhao has a $400,000 salary. Furthermore, both Ms. and Mr. Zhao, married, are 50 years old, file a joint return, have no dependents, and have $27,000 itemized deductions. Compute the Zhao's tentative minimum tax for the current year.

am.112.

The recent implementation of TCJA Act of 2017 limits the deductions for state and local taxes, which includes property taxes and sales taxes, to a maximum amount of $10,000 each year. Is the IRS taking drastic steps towards curbing home ownership? Does this place a disproportionate burden on taxpayers residing in states with higher market values on residential property?

Ms. Zhao has $200,000 private activity municipal bond interest income from The City of Indianapolis. Ms. Zhao's only other income for the year is her $600,000 salary and Mr. Zhao has a $400,000 salary. Furthermore, both Ms. and Mr. Zhao, married, are 50 years old, file a joint return, have no dependents, and have $27,000 itemized deductions. Compute the Zhao's tentative minimum tax for the current year.

Calculate the taxable value of the fringe benefit using the statutory formula in the following case context: Carron provides his employee (Rabbie) with the use of a Nissan Xtrail car 196days during the FBT year. During the period, the car travelled 15,000 km. Carron purchased the car last year for $45,000. Rabbie contributed $1,500 towards the cost of running the car and has provided Carron with relevant documentation.

Xavier bought furniture and fixtures (7-year property) on September 15, 2019 for $1,025,000. He elects to expense as much as possible under Section 179 but does not elect the 100% bonus. Xavier's earned income for the year is $1,200,000. What is the maximum deduction Xavier can take in 2019 for the equipment? (Round answers to the nearest dollar)

[The following information applies to the questions displayed below.] In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a total of $10 million in taxable gifts). Required: Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.) a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. X Answer is complete but not entirely correct. Gift tax due $ Unused exemption equivalent $ 10,700,000