This year, Brent by himself purchased season baseball tickets in the exclusive sky club. The price of the tickets was $60,000, and Brent divided the tickets equally with his two brothers (Brent gave one-third of the tickets to each brother). Has Brent made a taxable gift and, if so, in what amount?

Question

Quizplus · Accepted Answer

Brent gave each brother tickets worth $20,000 (one-third of $60,000). The annual gift tax exclusion is $15,000 per recipient, so the taxable gift amount is $5,000 per brother ($20,000 - $15,000).

This Year, Brent by Himself Purchased Season Baseball Tickets in the Exclusive