Charles gave his three grandsons $21,000 each, his friend, Joe, $16,000, and his daughter $31,000.His second wife, Marla, gave her three children $51,000 each and $50,000 to her church.What are their combined taxable gifts if they do not elect gift splitting?

Question

Quizplus · Accepted Answer

The combined taxable gifts are calculated by adding all the gifts and subtracting the annual exclusion for each recipient. In 2023, the annual exclusion is $17,000 per recipient. Charles's gifts: 3 grandsons ($21,000 each) + Joe ($16,000) + daughter ($31,000) = $110,000. Marla's gifts: 3 children ($51,000 each) + church ($50,000) = $203,000. Total gifts = $313,000. Subtract exclusions: 7 recipients x $17,000 = $119,000. Taxable gifts = $313,000 - $119,000 = $194,000.

Charles Gave His Three Grandsons $21,000 Each, His Friend, Joe