gift_tax_solutions - Topic: Gift Taxes Solution Part 1:...

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Topic: Gift Taxes – Solution Part 1: What is a gift? During 2009, Dick and Jane, a married couple, make the following transfers: $22,000 cash to son Hal. $30,000 ABC common stock to son Floyd (adjusted basis $17,500). $20,000 tuition payment to UCF for daughter Beth. $60,000 cash to the American Diabetes Foundation (a qualified charity). $10,000 cash to the “Young for Governor” campaign. $200,000 cash to a revocable trust for the benefit of their three children. $45,000 payment to Florida Hospital for medical care for Jane’s mother. $42,000 car to Dick’s brother, subject to a liability of $6,000 (adjusted basis 97,000). Solution: Several of these transfers are not considered gifts for gift tax purposes: The $20,000 tuition payment to UCF , the $45,000 payment to Florida Hospital for medical care, and the $10,000 political contribution are not gifts by definition. The $200,000 transfer to the trust is not a completed gift since the trust is revocable . The car transferred to Dick’s brother is part sale/part gift.
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This note was uploaded on 09/09/2011 for the course TAX 5015 taught by Professor Kelliher,c during the Spring '08 term at University of Central Florida.

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gift_tax_solutions - Topic: Gift Taxes Solution Part 1:...

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