gift_tax_examples - . Mel (an unmarried individual) made...

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Topic: Gift taxes 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). Required : (a) Which of these transfers are treated as gifts for gift tax purposes? (b) What is the amount of taxable gifts for the year if Dick & Jane elect to split gifts? Part 2: Compute the gift tax liability
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Unformatted text preview: . Mel (an unmarried individual) made the following transfers during 2008; he had previously made a $750,000 taxable gift in 1996: $25,000 child support payment to his ex-wife for his son Marvin. $450,000 transfer to a qualified trust for a minor for his son Marvin, age 12. Marvin has no access to the funds until he is 21, but the funds may be used on his behalf, and the assets go to Marvins estate if he dies before age 21. $200,000 transfer of stocks (adjusted basis 225,000) to an irrevocable trust. Mel retains the income interest for his life. His mother will receive the remainder interest upon Mels death. Assume the value of the income interest is $140,000 and the value of the remainder interest is $60,000. Required : What is Mels 2008 gift tax liability?...
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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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