This year Don and his son purchased real estate for an investment. The price of the property was $500,000, and the title named Don and his son as joint tenants with theright of survivorship. Don provided $320,000 of the purchase price and his son provided the remaining $180,000. Has Don made a taxable gift and, if so, in what amount?

Question

Quizplus · Accepted Answer

Don made a taxable gift of $56,000 because he contributed $320,000 but only owns half of the property ($250,000), resulting in a gift of the difference ($320,000 - $250,000 = $70,000), minus the annual exclusion ($14,000), totaling $56,000.

This Year Don and His Son Purchased Real Estate for an Investment