Bernie is single and has never made any prior gifts. In $2020,$ he makes the following gifts of cash: $$115,000$ to Donald; $$15,000$ to Elizabeth; $$5,000$ to Amy; $$20,000$ to Ronald; and $$25,000$ to EKU. What is the amount of the taxable gifts made by Bernie?

Answer

$$105,000$

Question

Assume that Bernie has made no prior gifts. He makes an inter vivos gift in $2020$ of $$100,000$ to Michael. What is the most correct statement about the gift taxation of that gift?

Answer

Bernie will pay no tax because the unified credit exceeds the $$34,000$ tax payable.

Question $($Answer this question, please$).$

With respect to the two preceding questions, what is the most correct statement about the amount of tax that must be paid?

Bernie must pay a tax equal to $40\%$ of the taxable gifts in both questions.

There is no tax in either question because there are zero taxable gifts in each question.

There is no tax to pay because the unified credit exceeds the gift tax payable in both questions.

Bernie must pay a gift tax in the first question because he is single but not in the second question because he is married.