Becky made taxable gifts in 2000, 2010, and 2013. In computing the gift tax on the 2013 gift, she must consider all of the prior taxable gifts.

Question

Quizplus · Accepted Answer

The IRS considers all prior taxable gifts when computing the gift tax owed on current gifts. The total amount of taxable gifts made by the taxpayer in their lifetime is known as the "cumulative taxable gifts." This cumulative total is used to determine the gift tax owed on any new gifts made during the taxpayer's lifetime.

Becky Made Taxable Gifts in 2000, 2010, and 2013