FACTS

Abe (SS# 111-11-1111) and Betty (SS# 222-22-2222) Call, ages 80 and 75, are retired CPA's who live at 309 Bird Street, Cedar City, UT 75214.  They have three adult children:  Doug Call, Ellen Call and Frank Call.  Doug and Frank are married with children and gainfully employed in successful careers. Ellen just finished college and recently moved out and got married.  Abe and Betty have never given taxable gifts prior to this year.  In 2022 the Calls make the following gifts from there sole and separate property.

Assets Gifted	FMV of Gifts made by Abe	FMV of Gifts made by Betty
House in Beaumont, TX given to Doug, Ellen and Frank as equal tenants in common.  The house was acquired by Abe & Betty Call as tenants-in-common in 2005 at a cost of $2,400,000 ($1,200,000 each). On the date of gift the house is worth $8,000,000.	$4,000,000	$4,000,000
Apartment building in San Antonio, TX given to Doug, Ellen and Frank as equal tenants in common.  Abe & Betty Call purchased the apartment building in 2007 as tenants-in-common for $8,000,000 ($4,000,000 each).  On the date of gift the apartment building is worth $12,000,000.	$6,000,000	$6,000,000
Ranch in San Angelo, TX given to Doug, Ellen and Frank as equal joint tenants with right of survivorship.  The ranch was inherited by Abe from his dad in 1995 when it was worth $1,000,000. He owned it in his name only.  On the date of gift the ranch is worth $7,000,000.	$7,000,000	$0
Betty gave $90,000 cash to her father, George Hardy, from her separate savings account to reimburse him for medical expenses he spent over the last couple of years.	$0	$90,000
Abe and Betty spent $60,000 on Ellen's wedding.	$30,000	$30,000
Abe spent $50,000 to purchase a car which he gave to his favorite niece, Iza Call, as a law school graduation present.  The money came from Abe's separate savings account.	$50,000	$0

 

Abe and Betty agree to split all of their gifts for gift tax purposes.  They timely file their gift tax returns on April 15^th of the following year.

REQUIRED

Complete the gift tax returns for Abe and Betty Call based on the facts provided above.  No tax preparation software is allowed in preparing this return.

CHECK FIGURES

Gift tax due (Form 709, line 19): $572,000.

Value of Gifts (Form 709, Schedule A Part 4, line 11):       $13,490,000.

GRADING

This tax return assignment is worth 100 points. Each tax form is assigned a set number of points as listed below.  Grades are determined by taking the total number of points earned and divided by the total number of points available multiplied by 100.