QUESTION 5 George and Edith Jackson own 500 shares of publicly traded Acme stock. They purchased...

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QUESTION 5 George and Edith Jackson own 500 shares of publicly traded Acme stock. They purchased the shares 10 years ago for $70,000, and now wish to give their son, Albert, a gift of the stock which is now worth $90,000. Albert is 30 years old and not a dependent of his parents. George and Edith file a joint return for 2022 and are in the 24% marginal tax bracket while their son Albert is in the 10% marginal tax bracket. George and Edith are not concerned with gift taxes, as their estate is significantly below the lifetime exemption equivalent. In order to create the lowest possible tax liability on the sale of the stock you would advise that: George and Edith sell the shares and give the proceeds to Albert net of taxes. Give the shares as a gift to Albert and let him sell the shares and then pay taxes at the parent's tax rate. Give the shares as a gift to Albert and let him subsequently sell the stock. He will not pay any taxes on the gain since he is in the 0% tax bracket for long term capital gains. Give the shares as a gift to Albert and let him immediately sell the shares. He will pay taxes at a 10% tax rate on the sale of the stock since he will have owned the stock for less than one year. QUESTION 6 On December 28, 2022 Kramer sold 150 shares of Lavender, Inc. stock for $77,000. He purchased the stock in 2012 for $89,000. On January 10, 2023 he purchased all 150 shares of the same stock for $95,000. What amount of loss can he recognize in 2022? $12,000 $77,000 $22,000 $0 QUESTION 5 George and Edith Jackson own 500 shares of publicly traded Acme stock. They purchased the shares 10 years ago for $70,000, and now wish to give their son, Albert, a gift of the stock which is now worth $90,000. Albert is 30 years old and not a dependent of his parents. George and Edith file a joint return for 2022 and are in the 24% marginal tax bracket while their son Albert is in the 10% marginal tax bracket. George and Edith are not concerned with gift taxes, as their estate is significantly below the lifetime exemption equivalent. In order to create the lowest possible tax liability on the sale of the stock you would advise that: George and Edith sell the shares and give the proceeds to Albert net of taxes. Give the shares as a gift to Albert and let him sell the shares and then pay taxes at the parent's tax rate. Give the shares as a gift to Albert and let him subsequently sell the stock. He will not pay any taxes on the gain since he is in the 0% tax bracket for long term capital gains. Give the shares as a gift to Albert and let him immediately sell the shares. He will pay taxes at a 10% tax rate on the sale of the stock since he will have owned the stock for less than one year. QUESTION 6 On December 28, 2022 Kramer sold 150 shares of Lavender, Inc. stock for $77,000. He purchased the stock in 2012 for $89,000. On January 10, 2023 he purchased all 150 shares of the same stock for $95,000. What amount of loss can he recognize in 2022? $12,000 $77,000 $22,000 $0