Ruth Ames died on January 10, 2021. In filing the estate tax return, her executor, Melvin Sims, elects the primary valua
Posted: Wed Mar 30, 2022 3:48 pm
Ruth Ames died on January 10, 2021. In filing the estate tax
return, her executor, Melvin Sims, elects the primary valuation
date and amount (fair market value on the date of death). On March
12, 2021, Melvin invests $30,000 of cash that Ruth had in her money
market account in acquiring 1,000 shares of Orange, Inc. ($30 per
share). On January 10, 2021, Orange was selling for $29 per share.
The stock is distrib-uted to a beneficiary, Annette Rust, on June
1, 2021, when it is selling for $33 per share. Melvin wants you to
determine the amount at which the Orange shares should appear on
the Federal estate tax return and the amount of Annette’s adjusted
basis for the stock. Write a letter to Melvin in which you respond
to his inquiry, and prepare a memo for the tax files. His address
is 100 Center Lane, Miami, FL 33124.
Use internet tax resources to address the following questions.
Look for reliable web-sites and blogs of the IRS and other
government agencies, media outlets, businesses, tax professionals,
academics, think tanks, and political outlets.
return, her executor, Melvin Sims, elects the primary valuation
date and amount (fair market value on the date of death). On March
12, 2021, Melvin invests $30,000 of cash that Ruth had in her money
market account in acquiring 1,000 shares of Orange, Inc. ($30 per
share). On January 10, 2021, Orange was selling for $29 per share.
The stock is distrib-uted to a beneficiary, Annette Rust, on June
1, 2021, when it is selling for $33 per share. Melvin wants you to
determine the amount at which the Orange shares should appear on
the Federal estate tax return and the amount of Annette’s adjusted
basis for the stock. Write a letter to Melvin in which you respond
to his inquiry, and prepare a memo for the tax files. His address
is 100 Center Lane, Miami, FL 33124.
Use internet tax resources to address the following questions.
Look for reliable web-sites and blogs of the IRS and other
government agencies, media outlets, businesses, tax professionals,
academics, think tanks, and political outlets.