Carl gave his six children gifts of $14,000 each in the current year.

Question

Quizplus · Accepted Answer

Under the annual gift tax exclusion, an individual can give up to $15,000 to another person in a single year without incurring a gift tax or using any of their lifetime gift tax exemption. Since Carl gave each of his six children $14,000, none of these gifts exceed the annual exclusion limit. Therefore, he has made no taxable gifts, assuming he has not exceeded this limit with other gifts during the year. If Carl and his wife elect to split the gifts, this effectively doubles the annual exclusion amount they can give to each recipient, further ensuring no taxable gifts were made. The statement about making $6,000 of taxable gifts is incorrect because it does not apply under the given conditions and the annual exclusion rules.

Carl Gave His Six Children Gifts of $14,000 Each in the Current