George and Martha, spouses, made a number of gifts during 2014. Their accountant is trying to help
Question:
George and Martha, spouses, made a number of gifts during 2014. Their accountant is trying to help them decide whether to elect gift splitting. If they elect gift splitting, each spouse will have $4 million of taxable gifts. If they do not elect gift splitting, George's taxable gifts will be $2 million, and Martha's will be $6 million. George has not made any earlier taxable gifts, but Martha made $250,000 of taxable gifts in 2009. Calculate the amount of gift tax each spouse will owe if they elect gift splitting and if they do not elect gift splitting for 2014. What do you recommend they do concerning the election to split gifts?
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George and Martha should gift split to save 364000 in taxes determined as follows With giftsplitting ...View the full answer
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