Jane and Arthur Patrikson are happy at their daughter graduating from high school.They gift their daughter $28,000,with $18,000 being paid out of Mr.Patrikson's account and the remaining from Mrs.Patrikson's account.What will be the gift tax payable by the Patrikson's on account of the above transaction?

Question

Quizplus · Accepted Answer

The gift tax applies only if the total amount gifted exceeds the annual exclusion limit, which is currently at $15,000 per individual recipient. In this case, each parent gifted $14,000 to their daughter, which is below the annual exclusion limit. Therefore, no gift tax is payable by the Patrikson's.

Jane and Arthur Patrikson Are Happy at Their Daughter Graduating