Davids wifes gifts To David Jr 244000 Plus One half of Davids wife 90000 Minus

Davids wifes gifts to david jr 244000 plus one half

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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
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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 )
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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

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