Note: This problem is for the $2023$ tax year.

James A$.$ and Ella R$.$ Polk, ages $70$ and $65,$ respectively, are retired physicians who live at $3319$ Taylorcrest Street, Houston, Texas $77079.$ Their three adult children $($Benjamin Polk, Michael Polk, and Olivia Turner$)$ are mature and responsible professionals.

The Polks have heard that some in Congress have proposed lowering the Federal gift tax exclusion to $$3,000,000.$ Although this change likely will not occur, the Polks believe that they should take advantage of the more generous exclusion amount available under existing law. Thus, the Polks make gifts during the current year, as summarized below.

Donor

Asset Transfer James Ella

Condominium located in Conroe $($TX$)$ acquired in $2016,$ cost $$1,200,000,$ to Benjamin, Michael, and Olivia as equal tenants in common. $$1,900,000$ $$1,900,000$

Office building, located in Round Rock $($TX$)$ built in $2018,$ cost $$1,800,000,$ to Benjamin, Michael, and Olivia as equal tenants in common. $2,300,0002,300,000$

Vacation ranch in Bandera $($TX$)$ inherited by James from his father in $2007,$ value then $$4,100,000,$ to Benjamin, Michael, and Olivia as equal joint tenants with right of survivorship. $7,600,0000$

Separate property reimbursing Ella's father $($Alan Roberts$)$ for his heart bypass operation. $082,000$

Paid for daughter's $($Olivia$\text{'}$s$)$ wedding to John Turner, a state$-$law obligation of support. $40,00040,000$

Separate property to purchase a new automobile as a graduation present $($from medical school$)$ for James's favorite niece $($Carol Polk$).42,0000$

Required:

Prepare $2023$ gift tax returns $($Form $709)$ for both of the Polks to compute the total taxable gifts $($line $3)$ for James and Ella.

An election to split gifts is made. The Polks made no taxable gifts in prior years. Relevant Social Security numbers are $123-45-6789($James$)$ and $123-45-6788($Ella$)$; stop with line $3$ of page $1,$ but complete pages $2$ and $3$ of the return.

Enter all amounts as positive numbers.

If required, round amounts to the nearest dollar.

Make realistic assumptions about any missing data.

Question Content Area

Complete Form $709$ for Ella.

Form $709$

Department of the Treasury Internal Revenue Service

United States Gift $($and Generation$-$Skipping Transfer$)$ Tax Return

Go to www$.$irs.gov$/$Form$709$ for instructions and the latest information.

$($For gifts made during calendar year $2023)$ OMB No$.1545-0020$

$2023$

$1$ Donor's first name and middle initial

Ella R$.2$ Donor's last name

Polk $3$ Donor's social security number

$123-45-6788$

$4$ Address $($number$,$ street, and apartment number$)$

$3319$ Taylorcrest Street $5$ Legal residence $($domicile$)$

USA

$6$ City or town, state or province, country, and ZIP or foreign postal code

Houston, TX $770797$ Citizenship $($see instructions$)$

USA

$8$ If the donor died during the year, check here $$ and enter date of death $,.$ Yes No

$9$ If you extended the time to file this Form $709,$ check here $$

$10$ Enter the total number of donees listed on Schedule A$.$ Count each person only once: $5$

$11$a Have you $($the donor$)$ previously filed a Form $709($or $709-$A$)$ for any other year? If $"$No$,"$ skip line $11$b $............$

b Has your address changed since you last filed Form $709($or $709-$A$)?.....................................$

$12$ Gifts by husband or wife to third parties. Do you consent to have the gifts $($including generation$-$skipping transfers$)$ made by you and by your spouse to third parties during the calendar year considered as made one$-$half by each of you? See instructions. $($If the answer is "Yes," the following information must be furnished and your spouse must sign the consent shown below. If the answer is $"$No$,"$ skip lines $1318.).................................$

$13$ Name of consenting spouse James A Polk $14$ SSN $123-45-6789$

$15$ Were you married to one another during the entire calendar year? See instructions $..........................$

$16$ If line $15$ is $"$No$,"$ check whether $$ married $$ divorced or $$ widowed$/$deceased$,$ and give date. See instructions:

$17$ Will a gift tax return for this year be filed by your spouse? If "Yes," mail both returns in the same envelope $........$

$18$ Consent of Spouse. I consent to have the gifts $($and generation$-$skipping transfers$)$ made by me and by my spouse to third parties during the calendar year considered as made one$-$half by each of us$.$ We are both aware of the joint and several liability for tax created by the execution of this consent.

Consenting spouse's signature: Date

$19$ Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form $709?$ If "Yes," complete Schedule C $....................................................$

$20$ Does any gift or other transfer repor

Form $709(2023)$ Page $2$

SCHEDULE A Computation of Taxable Gifts $($Including transfers in trust$)($see instructions$)$

A Does the value of