Becky made taxable gifts in 1974,2010,and 2012.In computing the gift tax on the 2012 gift,she must consider all of the prior taxable gifts.

Question

Quizplus · Accepted Answer

The gift tax calculation for the current year takes into account all prior taxable gifts made by the taxpayer. This is known as the "unified credit" system and ensures that the lifetime gift tax exemption is not exceeded.

Becky Made Taxable Gifts in 1974,2010,and 2012