Exam 12: The Gift Tax

Gloria makes the following gifts during the year: $16,000 cash to her son, Andy Stock with a basis of $10,000 and a $31,000 fair market value to her sister, Helen $100,000 to a revocable trust benefiting her nephew, George Land with a basis of $60,000 and a fair market value of $50,000 to the American Cancer Societ Before considering the unified credit, what are Gloria's taxable gifts?

A husband transfers $90,000 by gift directly to his wife. The marital deduction for the transfer is

In 2018, Letty makes taxable gifts totaling $4 million. Her only other taxable gifts amount to $1 million, all of which were made in 2012. What is Letty's 2018 gift tax liability before the unified credit?

Which of the following situations requires that a gift tax return be filed?

Interest- free or below- market loans

Ward and June decide to divorce after 30 years of marriage. Ward transfers $500,000 to June in settlement of her property rights. What are the gift tax consequences of this transfer?

Greg transfers property on August 8 of the current year with an adjusted basis of $40,000 and an FMV of $90,000 to his ex- wife as a property settlement that is part of their divorce agreement. The property settlement agreement and the divorce were both finalized on June 3 of the current year. Greg has made a gift of

What is the due date for the gift tax return? Are there any exceptions? If so, what are they?

Why are Crummey trusts popular for minors?

Discuss the purpose of the gift tax annual exclusion.

Molly sells her car, valued at $30,000, to her nephew Todd for $18,000. Molly has made a taxable gift.

Identify which of the following statements is true.

Identify which of the following statements is true.

Identify which of the following statements is true.

A net gift occurs when a donor makes a gift subject to the agreement that the recipient agrees to pay the gift tax.

A qualified disclaimer must be made within nine months after (a) the day the property is transferred, or (b) the day the person receiving the property becomes age 21, whichever is later.

Discuss the ways in which the estate and gift tax system is a unified system.

Identify which of the following statements is false.

Identify which of the following statements is true.

The purchase of a $20,000 engagement ring generates a taxable gift necessitating the filing of a gift tax return.