In 2018, Bill and his wife, Helen, made the following gifts: Bill's gifts: $50,000 to each of his five children; $30,000 to each of his six grandchildren; $100,000 to Central Hospital for his nephew's hospital bill. Helen's gifts: $100,000 to each of her two children; $50,000 to each of her three grandchildren; $200,000 a state senator's reelection campaign.
What are Bill's and Helen's respective taxable gifts (before their unified credit) if they elect gift splitting.

Question

Quizplus · Accepted Answer

Bill's taxable gifts: $50,000 x 5 = $250,000; $30,000 x 6 = $180,000; $100,000 = $100,000; Total: $530,000. After gift splitting, Bill's taxable gifts = $530,000 / 2 = $265,000.Helen's taxable gifts: $100,000 x 2 = $200,000; $50,000 x 3 = $150,000; $200,000 = $200,000; Total: $550,000. After gift splitting, Helen's taxable gifts = $550,000 / 2 = $275,000.

In 2018, Bill and His Wife, Helen, Made the Following