{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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 Marvin’s 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 Mel’s death. Assume the value of the income interest is $140,000 and the value of the remainder interest is $60,000. Required : What is Mel’s 2008 gift tax liability?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online