In the current year, Bonnie, who is single, sells stock valued at $60,000 to Linda for $15,000. Later that year, Bonnie gives Linda $25,000 in cash. Bonnie's taxable gifts from these transfers total
A)$70,000.
B)$59,000.
C)$55,000.
D)$25,000.

Question

Quizplus · Accepted Answer

Bonnie's taxable gifts will be the total of the value of the stock sold and the amount of cash given, minus the consideration received in return (i.e. the $15,000 paid by Linda for the stock).

Taxable gifts = ($60,000 + $25,000) - $15,000 = $70,000 - $15,000 = $55,000

Therefore, the correct answer is choice (C) $55,000.

In the Current Year, Bonnie, Who Is Single, Sells Stock