Question
What are the gift tax consequences in the following circumstances? a. Alice pays the law school tuition for her 24-year-old child, Cara. Alice also sends
What are the gift tax consequences in the following circumstances? a. Alice pays the law school tuition for her 24-year-old child, Cara. Alice also sends Cara $1,500 per month for living expenses. She also pays for a laptop computer, books, and school supplies. b. Same as 3.a., only Cara is Alices niece, not her child. c. Alice pays the medical bills of: (1) Cara, her 24-year-old child; (2) her niece who is 24; (3) her 63-year-old mother; (4) her best friend. d. Alice pays the rent, utilities, and food bills of the following individuals who do not live with her: (1) her 24-year-old child; (2) her mother; (3) her best friend.
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