Mr. and Mrs. Gupta want to make cash gifts to each of their four children, the children's four spouses, and three grandchildren (11 donees). Compute the total amount that the Guptas can transfer to their younger-generation family members without making a taxable gift for the year.

Question

Quizplus · Accepted Answer

Each person can gift up to $17,000 per donee per year without incurring a gift tax. Since both Mr. and Mrs. Gupta can gift $17,000 to each of the 11 donees, the total amount is 2 x 11 x $17,000 = $374,000.

Mr and Mrs