Paul makes the following property transfers in the current year: • $22,000 cash to his wife
• $34,000 cash to a qualified charity
• $220,000 house to his son
• $3,000 computer to an unrelated friend
The total of Paul's taxable gifts,assuming he does not elect gift splitting with his spouse,subject to the unified transfer tax is
A)$205,000.
B)$212,000.
C)$245,000.
D)$279,000.

Question

Quizplus · Accepted Answer

The gift to his wife is not taxable due to the marital deduction. The gift to the charity is not taxable due to the charitable deduction. The annual exclusion of $17,000 applies to the gifts to his son and friend. Therefore, the taxable gifts are $220,000 - $17,000 = $203,000 for the house and $3,000 - $17,000 = $0 for the computer, totaling $205,000.

Paul Makes the Following Property Transfers in the Current Year