Prior to her death in 2015, Alma made the following gifts. As a result of the 2013 transfer, Alma paid a gift tax of $70,000. As to these transactions, Alma's gross estate includes:

Question

Prior to her death in 2015, Alma made the following gifts.  As a result of the 2013 transfer, Alma paid a gift tax of $70,000. As to these transactions, Alma's gross estate includes:

Quizplus · Accepted Answer

Alma made three gifts prior to her death in 2015, but only one of them is subject to gift tax ($100,000 in 2013). The gift tax paid on that transfer ($70,000) is added back to Alma's gross estate. Therefore, her gross estate includes the value of all her property at the time of her death ($1,050,000) plus the gift tax paid on the taxable gift, for a total of $1,220,000. Thus, the correct choice is D.

Prior to Her Death in 2015, Alma Made the Following