Jessica is doing her year-end tax planning and is concerned about gift taxes.If she comes to you for advice,which of the following would you tell her is a taxable gift?

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Buying a $20,000 car for Trisha when she goes away to Norden University is considered a taxable gift as it is over the annual exclusion amount of $15,000 per recipient for 2020. The other options are not taxable gifts. Payment to the doctor for her gardener's medical expenses is exempt from gift tax as long as the payment is made directly to the medical provider. Tuition paid to Norden University for her hairdresser's daughter, Trish A, is also exempt as long as it is paid directly to the institution. A donation to her favorite political organization is not a taxable gift as it is considered a charitable contribution.

Jessica Is Doing Her Year-End Tax Planning and Is Concerned