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please help, will give thumbs up Problem 2: NAL and Attribution (Total Points Available: 22) Angela and Jeremy are a married Canadian couple, with a
please help, will give thumbs up
Problem 2: NAL and Attribution (Total Points Available: 22) Angela and Jeremy are a married Canadian couple, with a 22-year old daughter Fiona and a 15-year old son Jason, Angela works full-time as a professor, Jeremy is a physical theraphist, Fiona is an entry level accountant while Jason is a full-time student in high school. Assume the following combined tax rates: Angela 53% Jeremy 41% Fiona 25% Jason 15% In 2021, Angela is considering transferring 5,000 shares of a Canadian public company to one of her family members. She acquired those shares last year for $20 each. The current FMV is $25 per share. Dividens income from these shares per year is $1,000. She also expects that the shares will increase in value quite considerably to in the next year (assuming $40) when she plans to ask the receiving family member to sell at that time. Assume that the receiving family member receive dividends income only once before selling the shares. Suppose Angela has the following options: 1. Sell to Jeremy for $25 per share, no election out of rollover 2. Sell to Jeremy for $25 per share, selecting out of rollover 3. Sell to Fiona for $25 per share 4. Sell to Fiona for $22 per share 5. Sell to Jason for $25 per share 6. Sell to Jason for $22 per share 7. Gave to Jason for free Required: Please advise which option should Angela choose to maximzie the family's tax savings. Please show the calculations and explanations for the immediate and future tax consequences and amount of family tax savings for each option. Problem 2: NAL and Attribution (Total Points Available: 22) Angela and Jeremy are a married Canadian couple, with a 22-year old daughter Fiona and a 15-year old son Jason, Angela works full-time as a professor, Jeremy is a physical theraphist, Fiona is an entry level accountant while Jason is a full-time student in high school. Assume the following combined tax rates: Angela 53% Jeremy 41% Fiona 25% Jason 15% In 2021, Angela is considering transferring 5,000 shares of a Canadian public company to one of her family members. She acquired those shares last year for $20 each. The current FMV is $25 per share. Dividens income from these shares per year is $1,000. She also expects that the shares will increase in value quite considerably to in the next year (assuming $40) when she plans to ask the receiving family member to sell at that time. Assume that the receiving family member receive dividends income only once before selling the shares. Suppose Angela has the following options: 1. Sell to Jeremy for $25 per share, no election out of rollover 2. Sell to Jeremy for $25 per share, selecting out of rollover 3. Sell to Fiona for $25 per share 4. Sell to Fiona for $22 per share 5. Sell to Jason for $25 per share 6. Sell to Jason for $22 per share 7. Gave to Jason for free Required: Please advise which option should Angela choose to maximzie the family's tax savings. Please show the calculations and explanations for the immediate and future tax consequences and amount of family tax savings for each optionStep by Step Solution
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