Individual Income tax test
Please EXPLAIN your answers and show ealculations.
1. Don gave his daughter Donice land worth $100,000 (he had previously given $14.000 which used his annual gift tax exclusion). The land cost Don $50,000 three years ago. Doniee subsequently sold the land to friend Fannie for $100,000 in cash and $20,000 in Pepsi stock. Caleulate and explain Donce’s sale of the land.
2. Terri cloth is an excutive with a small business. The owner wants to transfer company stock to Tem now worth $100,000 if she works for the company for three years. Terri fully expects the stock to be worth more in three years. Explain Tem’s options.
3. List and give an example of the tree types of tax assets:
4. Give an example and explain the difference between a defined contribution and a defined benefit pension plan.
5. Give an example explain the difference between a Roth IRA and a traditional IRA.
6. Explain pension plan vesting and panicipation requirements.
7. What is the earliest and latest age for withdrawal from a defined contribution plan and the tax consequences of the withdrawal
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