Carl Gave His Six Children Gifts of $16,000 Each in the Current
Carl gave his six children gifts of $16,000 each in the current year.
A) Carl has made $90,000 of taxable gifts.
B) Carl has made $6,000 of taxable gifts.
C) Carl has made no taxable gifts if he and his wife elect gift splitting.
D) (b) and (c) are both true.
The annual gift tax exclusion
A) cannot increase beyond $15,000 per donor.
B) does not apply to a bargain purchase between related persons.
C) applies to future interests.
D) removes small gifts from taxation.
Jessica is doing her year-end tax planning and is concerned about gift taxes. If she comes to you for advice, which of the following would you tell her is a taxable gift?
A) Payment to the doctor for her gardener's medical expenses
B) Tuition paid to Norden University for her hairdresser's daughter, Trisha.
C) A donation to her favorite political organization
D) Buying a $20,000 car for Trisha when she goes away to Norden University
What is the limit on the amount of property that can be transferred to a spouse free of any transfer taxes?
A) $15,000 per year
C) An unlimited amount
D) All transfers to a spouse are subject to transfer taxes