David's wife's gifts:To David Jr.$244,000 Plus: One-half of David's wife90,000 Minus: One-half of gift deemed made by spouse(122,000) Minus: Exclusions ($14,000)( 28,000) Taxable gifts$184,000Cumulative married Taxable gifts$368,000b.There would be two donees and $42,000 of exclusions for each donor. Taxable gifts forboth David and his wife would instead be $170,000. pp. C12-4, C12-5, C12-22 and C12-23.C 12-35Determine the Taxable Gifts. Yolanda and Xavier, spouses, have four adult children, Andy, Betty, Cathy,and Danny. In 2016 they made a number of gifts. Yolanda gave Andy cash of $40,000 and Betty stock valued at $60,000. Xavier gave Cathy stock valued at $38,000 and deposited $80,000 in a bank account in the names of Xavier and Danny, with joint tenants with right of survivorship. Later in the year, Xavier withdrew $10,000 from the account, and Danny withdrew $8,000. Xavier gave stock valued at $70,000 to his alma mater, State technology institute. Calculate the amount of taxable gifts for each spouse if the elect gift splitting.Unknown
Yolanda 100,000 total gifts, minus half deemed to be made by spouse (50,000) plus half of spouses (58,000), totaling 108,000. Exclusion of (60,000) 14,000 X 4 + 4,000 and minus charitable deduction (21,000) = 27,000C 12-36Recognition of Transactions Treated as Gifts. In the current year, Emily, a widow, engages in the following transactions. Determine the amount of the completed gift, if any, arising from each of the following occurrences.A.Emily names Lauren the beneficiary of a $100,000 life insurance policy on Emily’s life. The beneficiary designation is not irrevocable.B.Emily deposits $50,000 cash into a checking account in the joint names of herself and Matt, who deposits nothing to the account. Later that year, Matt withdraws $15,000 from the account.C.Emily pays $22,000 of nephew Noah’s medical expenses directly to county hospital.D.Emily transfers the title to land valued at $60,000 to Olive.a.No gift arises because there is no completed transfer. The designation is not irrevocable. p.C12-14.b.There is a gift to Matt of $15,000 when Matt makes the withdrawal. Since there iscurrently an exclusion amount of $14,000 only $1,000 is taxable is no Unified Credit exists. pp. C12-13and C12-14.c.There is no gift because the transaction is a direct payment of medical expenses. pp.C12-7 and C12-8.d.There is a $60,000 gift to Olive. Not including personal exemption of $14,000 andUnified Credit. p. C12-7.C 12-37Calculation of Gift Tax. Refer to the facts of Problem 12-36 and assume the current year is 2016. Emily’s prior gifts are as follows: Year Amount of Taxable Gifts 1974 $500,000 1998 $1,000,000 What is Emily’s 2016 Gift Tax liability? Emily's current gifts from Problem C12-35 total $72,000 ($12,000 + $60,000). Her taxable gifts are $52,000 ($72,000 - $20,000 of exclusions). Emily's gift tax liability is determined as follows: Tax on $2,552,000 $1,053,360 Minus: Tax at current rates on $2,500,000 of prior gifts (1,025,800 )
Tentative tax $ 27,560 Minus: Remaining unified credit ($202,050 - $96,300 used in 1984) ( 105,750 ) Tax payable $ -0- pp. C12-23 through C12-25.
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- Fall '15
- Taxation in the United States, taxable gifts