Mr. and Mrs. Gupta want to make cash gifts to each of their four children, the children's four spouses, and three grandchildren. Compute the total amount that the Guptas can transfer to their younger-generation family members without making a taxable gift for the year.

Question

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In the United States, as of the knowledge cutoff date in 2023, each individual can give a gift of up to $16,000 per year to any number of people without incurring the gift tax or even having to report the gift. Since both Mr. and Mrs. Gupta can each give $16,000 to each person, they can give a total of $32,000 to each family member. They have 11 family members to give gifts to (4 children + 4 spouses + 3 grandchildren = 11). Therefore, the total amount they can give without making a taxable gift is 11 family members * $32,000 per family member = $352,000. However, this option is not listed, indicating a mistake in my calculation based on the provided options. Correcting this oversight based on the options given and the premise of the question, the correct approach should consider the annual exclusion amount correctly and the number of recipients:Given the annual exclusion amount and the number of recipients, the correct calculation without the specific annual exclusion amount provided in the options would be:For each parent: $15,000 (assuming this is the correct annual exclusion amount based on the options provided) * 11 recipients = $165,000. Since there are two parents (Mr. and Mrs. Gupta), the total would be $165,000 * 2 = $330,000.Therefore, the correct answer, based on the recalculated approach and the options provided, is indeed D) $330,000, acknowledging the error in the initial calculation and explanation.

Mr and Mrs