Refer to the facts of Problem C:12-36 and assume the current year is 2020. Emilys prior gifts
Question:
Refer to the facts of Problem C:12-36 and assume the current year is 2020. Emily’s prior gifts are as follows:
Year . . . . . . . . . . . . . . . . Amount of Taxable Gifts
1974 . . . . . . . . . . . . . . . . $ 500,000
1998 . . . . . . . . . . . . . . . . 1,000,000
What is Emily’s current year gift tax liability?
Data from Problem C:12-36
In the current year, Emily, a widow, engages in the following transactions. Determine the amount of the completed gift, if any, arising from each of the following occurrences.
a. Emily names Lauren the beneficiary of a $100,000 life insurance policy on Emily’s life. The beneficiary designation is not irrevocable.
b. Emily deposits $50,000 cash into a checking account in the joint names of herself and Matt, who deposits nothing to the account. Later that year, Matt withdraws $17,000 from the account.
c. Emily pays $22,000 of nephew Noah’s medical expenses directly to County Hospital.
d. Emily transfers the title to land valued at $60,000 to Olive as sole owner.
Step by Step Answer:
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse