LO7 Phong would like to begin planning her estate. She owns marketable securities Communication Skills that cost

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LO7 Phong would like to begin planning her estate. She owns marketable securities Communication Skills that cost $10,000 twelve years ago. The market value is $40,000. She wonders whether she should sell her securities and distribute the proceeds to her son before she dies or just give the securities directly to him. Phong’s marginal tax rate is 35%; her son’s marginal tax rate is 15%. Write a letter to Phong explaining an optimal tax strategy for transferring assets to her son.

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Concepts In Federal Taxation 2011

ISBN: 9780538467926

18th Edition

Authors: Kevin E. Murphy, Mark Higgins

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