This year Brent 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. Has Brent made a taxable gift and, if so, in what amount?

Question

Quizplus · Accepted Answer

Brent made two taxable gifts of $6,000 each because the annual gift tax exclusion for 2023 is $17,000 per recipient. The total value of the tickets is $60,000, and Brent's share is $20,000. The excess over the exclusion amount ($20,000 - $17,000) is $3,000 per brother, resulting in two taxable gifts of $3,000 each.

This Year Brent Purchased Season Baseball Tickets in the Exclusive