Minimize combined taxes between the overall family

Reference no: EM133610275

Question: Kelsey and David are married and would like to gift to their sole grand-daughter Lauren one of two pieces of property, each worth $300,000, and then sell the other themselves. Lauren is planning on selling the property shortly after receiving it. Assume that any sale by Kelsey and David would be subject to either 32% ordinary rate or 15% long-term capital rate, whichever is applicable, and any sale by Lauren would be subject to either 10% ordinary rate or 0% long-term capital rate (given she has lower income). Ignore 3.8% Medicare investment surtax for this problem. Given your understanding of depreciation recapture, which of the following assets would you recommend Kelsey and David gift if the strategy is to minimize combined taxes between the overall family?

Reference no: EM133610275

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