Crystal deposited $50,000 into a joint savings account in her name and the name of her son,Jason.Later that same year,Jason withdrew $16,000 from the account.If Crystal made no other gifts to Jason during that year,what is the value of Crystal's taxable gifts (before applying the unified credit)?

Question

Quizplus · Accepted Answer

The annual gift tax exclusion for 2023 is $17,000 per recipient. Crystal's gift to Jason is $16,000, which is below the exclusion limit, so the taxable gift is $0. However, since the question asks for the value before applying the unified credit, the taxable amount is $16,000 - $14,000 (exclusion for 2022) = $2,000.

Crystal Deposited $50,000 into a Joint Savings Account in Her