Refer to the facts of Problem 12-35 and assume the current year is 2013. Emily's prior gifts are as follows:
Year _______________________ Amount of Taxable Gifts
1974 ......................................... $ 500,000
1998 ......................................... 1,000,000
What is the gift tax liability with respect to Emily's 2013 gifts?
In problem 12-35
Yolanda and Xavier, spouses, have four adult children, Andy, Betty, Cathy, and Danny. In 2013, 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, 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 Technological Institute.