Gloria makes the following gifts during the year: $ \$ 15,000 $ cash to her son, Andy
Stock with a basis of $ \$ 10,000 $ and a $ \$ 30,000 $ fair market value to her sister, Helen $ \$ 100,000 $ to a revocable trust benefiting her nephew, George
Land with a basis of $ \$ 60,000 $ and a fair market value of $ \$ 50,000 $ to the American Cancer Society
Before considering the unified credit, what are Gloria's taxable gifts?

Question

Gloria makes the following gifts during the year: $ \$ 15,000 $ cash to her son, Andy
Stock with a basis of $ \$ 10,000 $ and a $ \$ 30,000 $ fair market value to her sister, Helen $ \$ 100,000 $ to a revocable trust benefiting her nephew, George
Land with a basis of $ \$ 60,000 $ and a fair market value of $ \$ 50,000 $ to the American Cancer Society
 Before considering the unified credit, what are Gloria's taxable gifts?

Quizplus · Accepted Answer

The taxable gifts are the total of the gifts minus the annual exclusion of $15,000. The gifts to Andy and Helen are both over the annual exclusion, so they are taxable. The gift to George is not taxable because it is to a revocable trust. The gift to the American Cancer Society is not taxable because it is to a charity. Therefore, the taxable gifts are $15,000 + $30,000 = $45,000.

Gloria Makes the Following Gifts During the Year $15,000 \$ 15,000 $15,000

Gloria Makes the Following Gifts During the Year $\$ 15,000$