QTIP Trust

When Mr. Jolson died in January 2003, his will provided for the establishment of a QTIP trust. Mrs Jolsen was named to receive income from the trust for her lifetime with their children named as remainder beneficiaries. Because Mrs. Jolsen has substantial other assets and income sources, she does not believe that the QTIP trust is necessary and prefers that the assets of the trust pass directly to their children instead. Is it possible for her to disclaim or renounce her interest in the trust? Would this renunciation or disclaimer result in the assets passing to the children from Mr. Jolsen's estate? What would the impact of the disclaimer on the martial deduction allowable to his esta... click for more

John Ralph's Corporations: liquidation issues, estate planning

See attached file for full problem description. --- John Ralph owns The Ralph Construction Company (RCC), a C corporation with a September 30, year end. For ten years RCC constructed special-purpose buildings and reported revenues on the percentage-of-completion method. John also owns Construction Equipment, Inc. (CE). CE is a calendar year S corporation that rents and leases construction equipment to contractors. Typically 25% of CE's revenue have been from RCC. CE uses the accrual basis of accounting. On September 30th of Year 10, RCC's tax-basis balance sheet: Assets Current Assets Cash $2,502,826 Certificates of deposit 125,949 Investment Securi... click for more

Tax problems

4. Oliver and Wendell are the two equal shareholders of Holmes Inc, an S corporation. It made an S election in its first year of operations. Each shareholder has a $10,000 basis in his stock at the beginning of the year. The corporation has $56,000 of net income from operations for the year and made a cash distribution of $80,000, which was divided equally between the two shareholders. Which of the following is a true statement? A. The shareholders will have a dividend income. B. The shareholders will have a capital gain on the distribution. C. The shareholders will have a positive basis in their stock. D. None of the above 5. Parent Corporation formed Subsidiary Corporation on Apri... click for more

Public Relations

A company wants to introduce a new product in another country, develop a tactical plan using the intranet/internet to promote the new product.

What needs to be included in gross income?

A man received $7500 for being an executor of an estate. He also received a home worth 100,000 but was only purchased for 30,000. Finally, he recives the life insurance benefits of 100,000. He elected to receive payment in installments and for this year he collected 30,000 of it. With these three scenarios, how much would his income increase by. I am confused on the home scenario.