Paul makes the following property transfers in the current year: • $22,000 cash to his wife
• $34,000 cash to a qualified charity
• $220,000 house to his son
• $3,000 computer to an unrelated friend
The total of Paul's taxable gifts,assuming he does not elect gift splitting with his spouse,subject to the unified transfer tax is
A)$206,000.
B)$214,000.
C)$234,000.
D)$279,000.

Question

Quizplus · Accepted Answer

A)$220,000 - $14,000 = $206,000.The gift to the unrelated friend is below the $14,000 annual gift tax exclusion.The gifts to his wife and to the charity are not subject to gift tax.

Paul Makes the Following Property Transfers in the Current Year