Illustrate what are tax consequences to both lotta and meg

Assignment Help Financial Accounting

Reference no: EM13129390

Your client, Lotta Bucks, came to your office on Feb 1, 2012 and said that she had loaned her daughter, Meg A. Bucks, $80,000 on an interest free demand note. The lan was mad on Jan 1, 2011 and the applicable federal rate was 3.5% for the entire year. Meg invested the money and earned $2500 in the year (she has no other net investment income for 2011)

what are the tax consequences to both Lotta and Meg(show the 4 portions of the deemed transaction along with the imputed amounts) for 2011?

Reference no: EM13129390

Questions Cloud

Illustrate what about chain of custody before someone : Illustrate what about chain of custody before someone from the legal system discovers the evidence? If the evidence passes through several hands first, does that invalidate the chain of custody?

What is the ending balance of goods in process inventory : The production department started the month with the beginning goods in process inventory of $350,000. During the month, it was assigned the following costs: direct materials, $192,000; direct labor, $90,000; overhead applied at the rate of 30% of..

Explain how does the fourth amendment work in the workplace : But most fraud takes place at the workplace. Explain how does the fourth amendment work in the workplace? Does the employee have any protection from it?

Identify several areas in business operations : Identify several areas in business operations where weakness in control over data may occur. Then, determine which can do the most harm to the organization. Provide your rationale.

Illustrate what are tax consequences to both lotta and meg : Illustrate what are the tax consequences to both Lotta and Meg(show the 4 portions of the deemed transaction along with the imputed amounts) for 2011?

Integration by parts and motion in particle : A particle is set in motion at time t=0 and moves to the right along the x-axis. (a) Suppose that its acceleration at time t is a=100e^(-1). Show that the particle moves infinitely far to the right along the x-axis.

Determine the write-off rustin : If Congress reenacts additional first-year depreciation for 2010, Rustin elects not to take additional first-year depreciation. Determine the write-off Rustin can take in 2010.

Comment on the following items relative to tax planning : Comment on the following items relative to tax planning strategies of a fiduciary entity.

Explain how much of the passive loss may white corporation : white corporation, a closesly help personal service corporation has $150000 of passive losses, $120000 of active business income and $30000 of portfolio income. Explain how much of the passive loss may white corporation deduct

User Account

All Pages