Quinn made a taxable gift of a $4,500,000 home (after his annual exclusion) to his daughter in 2011. In December of the current year, Quinn made taxable gifts totaling $15,000,000 (after annual exclusions). What is Quinn's gift tax in 2018 if 2011 was the only year in which he made taxable gifts?

Question

Quizplus · Accepted Answer

First, we need to calculate the total taxable gifts made by Quinn in 2018:
$15,000,000 (total gifts) - $15,000 (annual exclusion) x 2 (recipients) = $14,970,000

Next, we need to add Quinn's 2011 taxable gift of the $4,500,000 home (after annual exclusion):
$14,970,000 + $4,500,000 = $19,470,000

Using the 2018 Gift Tax Rate Schedule, the gift tax on $19,470,000 is $2,913,000.

Therefore, the answer is C ($2,913,000).

Quinn Made a Taxable Gift of a $4,500,000 Home (After