In 2022 Bonnie, a sole proprietor, loaned her employee, John…

In 2022 Bonnie, a sole proprietor, loaned her employee, John, $10,000 to help him buy a car. In 2024, before he repaid the $10,000, Bonnie told John that she was “tearing up” the $10,000 note in recognition of his strong job performance. How should John treat the amount forgiven?

Vincent makes the following gifts during 2024:Gift of $15,00…

Vincent makes the following gifts during 2024:Gift of $15,000 cash to wifeGift of automobile valued at $35,000 to his adult sonGift of golf clubs valued at $5,000 to a friendContribution of $10,000 to churchAlthough he is married, none of the gifts are considered joint gifts with his wife. What are the total taxable gifts subject to the unified transfer tax?

Antonio is single and has taxable income of $170,000 without…

Antonio is single and has taxable income of $170,000 without considering the sale of a capital asset (land held for investment) in September of 2024 for $25,000. That asset was purchased six years earlier and has a tax basis of $5,000. The 2024 tax liability applicable to only the capital gain (without consideration of any additional Medicare tax) is