1)

1. Bob and Olivia are married. Bob wants to make gifts to their three children and four grandchildren in 2020. What is the maximum amount of the annual exclusion they will be allowed for these gifts in total for 2020?

   	a.	$15,000
   	b.	$30,000
   	c.	$210,000
   	d.	$60,000
   	e.	None of these

2)

1. Bill and Doris were divorced in 2018. Their only marital property was a personal residence with a value of $150,000 and cost of $50,000. Under the terms of the divorce agreement, Doris would receive the house and Doris would pay Bill $17,000 each year for 5 years, or until Bills death, whichever should occur first. Bill and Doris lived apart when the payments were made to Bill. The divorce agreement did not contain the word alimony.

   	a.	Bill must recognize a $50,000 [$75,000 1/2($50,000)] gain on the sale of his interest in the house.
   	b.	Bill does not recognize any income from the above transactions.
   	c.	Doris is not allowed any alimony deductions.
   	d.	Doris is allowed to deduct $17,000 each year for alimony paid.