In 2019, Bill and his wife, Helen, made the following gifts: Bill's gifts: $50,000 to each of his five children; $30,000 to each of his six grandchildren; $100,000 to Central Hospital for his nephew's hospital bill.Helen's gifts: $100,000 to each of her two children; $50,000 to each of her three grandchildren; $200,000 a state senator's reelection campaign.
What are Bill's and Helen's respective taxable gifts (before their unified credit) if they do not elect gift splitting.

Question

Quizplus · Accepted Answer

Bill's taxable gifts: $50,000 x 5 children + $30,000 x 6 grandchildren + $100,000 to hospital = $250,000. Subtracting the annual exclusion ($15,000 per recipient in 2019) for each child and grandchild, taxable gifts = $265,000. Helen's taxable gifts: $100,000 x 2 children + $50,000 x 3 grandchildren + $200,000 to campaign = $500,000. Subtracting the annual exclusion for each child and grandchild, taxable gifts = $275,000.

In 2019, Bill and His Wife, Helen, Made the Following