Chloe gave $16,000 to her son, $21,000 to her daughter, and paid $18,000 to the University of Delaware for her niece's tuition.She gave $12,000 to the United Way campaign, and $18,000 to her church.What is the amount of Chloe's taxable gifts?

Question

Quizplus · Accepted Answer

The annual exclusion for gifts is $16,000 per person. Chloe gave her son and daughter $16,000 and $21,000, respectively, which exceeds the annual exclusion by $5,000 and $15,000, respectively. She also gave $18,000 to her niece's tuition, which is not a taxable gift. She gave $12,000 to the United Way campaign and $18,000 to her church, which are both charitable gifts and are not taxable. Therefore, the amount of Chloe's taxable gifts is $5,000 + $15,000 = $20,000.

Chloe Gave $16,000 to Her Son, $21,000 to Her Daughter