Question
Prepare a gift tax return (Form 709) for Joel Bruton. Pages 4 and 5 of the form are not applicable. Joel and his wife Janis,
Prepare a gift tax return (Form 709) for Joel Bruton. Pages 4 and 5 of the form are not applicable. Joel and his wife Janis, both US citizens want to elect gift splitting. They reside at 117 Panther Place, South City, NC 28000. Joel had not been married prior to his marriage to Janice in 1996. For simplicity, assume that the Sec 7520 rate is 4%. Joels transactions, all in July are as shown below. Assume whatever amount you like for the adjusted basis of gifted property.
Value on Date of Gift | |
Stock given to daughter Belinda | $78,000 |
Apartment Building and land given to Daughter Belinda | 2,476,000 |
Tuition to University, paid for grandson Jacob | 24,000 |
Pottery collection given to Atlanta Art Museum | 120,000 |
Trust for the benefit of wife Janis (age 67) for life with remainder to Belinda. All income is to be distributed quarterly to Janis. | 3,000,000 |
During the year, Janis gave $40,000 cash to Belinda and $200,000 of stock to her sister Jeannette Johnson. Joel made a $1 million taxable gift in 2000. It was the first and only gift he ever made.
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