Gloria makes the following gifts during the year: $16,000 cash to her son, Andy
Stock with a basis of $10,000 and a $31,000 fair market value to her sister, Helen
$100,000 to a revocable trust benefiting her nephew, George
Land with a basis of $60,000 and a fair market value of $50,000 to the American Cancer Society
Before considering the unified credit, what are Gloria's taxable gifts?

Question

Quizplus · Accepted Answer

The taxable gifts are the gifts made to Andy ($16,000) and Helen ($31,000 - $10,000 = $21,000), totaling $37,000. The gifts to George and the American Cancer Society are not taxable because they are to a revocable trust and a charity, respectively.

Gloria Makes the Following Gifts During the Year: $16,000 Cash