Paul makes the following property transfers in the current year: The total of Paul's taxable gifts, assuming he does not elect gift splitting with his spouse, subject to the unified transfer tax is
A) $206,000.
B) $214,000.
C) $234,000.
D) $279,000.

Question

Paul makes the following property transfers in the current year:  The total of Paul's taxable gifts, assuming he does not elect gift splitting with his spouse, subject to the unified transfer tax is
A) $206,000. 
B) $214,000. 
C) $234,000. 
D) $279,000.

Quizplus · Accepted Answer

$220,000 - $14,000 = $206,000. The gift to the unrelated friend is below the $14,000 annual gift tax exclusion. The gifts to his wife and to the charity are not subject to gift tax.

Paul Makes the Following Property Transfers in the Current Year