In the current year, Donna gives $50,000 cash and $30,000 of stock to Mike. She also gives $40,000 of tax-exempt bonds to Angela. Her husband, Andy, gives $200,000 of land to Angela. Assume the couple elects gift splitting for the current year. Donna's taxable gifts total

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Donna's taxable gifts total $130,000. This is because the annual exclusion for gifts is $15,000 per person. Donna gave $50,000 to Mike, which is over the annual exclusion. She also gave $30,000 of stock to Mike, which is also over the annual exclusion. However, she can use gift splitting to reduce her taxable gifts. Gift splitting allows a married couple to treat gifts made by one spouse to a third party as if they were made by both spouses. This means that Donna can treat the $30,000 of stock she gave to Mike as if she and her husband each gave $15,000. This reduces her taxable gifts to $50,000. Donna also gave $40,000 of tax-exempt bonds to Angela. Tax-exempt bonds are not subject to gift tax, so this does not affect her taxable gifts. Her husband, Andy, gave $200,000 of land to Angela. This is also over the annual exclusion. However, Andy can also use gift splitting to reduce his taxable gifts. This means that Andy can treat the $200,000 of land he gave to Angela as if he and his wife each gave $100,000. This reduces his taxable gifts to $100,000. Therefore, Donna's taxable gifts total $50,000 + $100,000 = $130,000.

In the Current Year, Donna Gives $50,000 Cash and $30,000