Using property she inherited, Lei makes a 2022 gift of $16,200,000 to her adult daughter, Doris. Neither Lei nor her spouse, Greg, have made any prior taxable gifts.

Assuming that a flat 40% tax rate applies, determine the Federal gift tax liability if (a) the election to split gifts is not made and (b) the election to split gifts is made. (c) What are the tax savings from making the election?

The unified transfer tax exclusion amount for 2022 is $12,060,000.

If an amount is zero, enter "0".

Question Content Area

a. If the election to split gifts is not made, the taxable gift is $fill in the blank acc6f1fda025064_1and gift tax due on the gift is $fill in the blank acc6f1fda025064_2.

Feedback Area

Feedback

Married donors residing in community property jurisdictions possessed a significant gift tax advantage over those residing in common law states. To rectify this inequity, Section 2513 was enacted. Per 2513, a gift made by a person to someone other than their spouse may be considered, for Federal gift tax purposes, as having been made one-half by each spouse.

Question Content Area

b. If the election to split gifts is made, then the taxable gift from Lei is $fill in the blank 710291fe6fdc060_1and from Greg is $fill in the blank 710291fe6fdc060_2 . Gift tax due from Lei is $fill in the blank 710291fe6fdc060_3and from Greg is $fill in the blank 710291fe6fdc060_4.