Gift Tax Self-Quiz
In 2003, Tina
gave each of her three grandchildren, Avril, Samantha and Tucker, $20,000
in cash as their birthday presents. Tina paid gift tax on the excess amounts
over the annual exclusion amount. The gift tax is subtracted from the
gift.
|
In 2003, Juan
gave his nephew, Gustavo, a new car (value $15,000) as a graduation gift.
In addition, Juan gave his daughter, Gina, $5,000 in cash. How much did
Juan give in taxable gifts?
|
In 2003, Matthew
gave $11,000 in AOL Time Warner stock to his niece, Candy. He also gave
$7,500 in U.S. Treasury bonds to his cousin, Grady.
|
In 2003, Matthew
and his wife, Simone, gave $22,000 in AOL Time Warner stock to his niece,
Candy. They also gave $15,000 in U.S. Treasury bonds to his cousin, Grady.
Simone gave another $15,000 to her sister, Sheila.
|
Phillip’s
son, Barney, will leave for college in Massachusetts in a couple weeks.
Phillip paid $55,000 to the university last month for the $35,000 tuition;
the balance will cover room, board and other fees. In addition, Phillip
deposited $5,000 into Barney’s new bank account to cover emergencies.
|
Marilyn’s
sister, Mandy, broke her leg and suffered some internal injuries in a
motorcycle accident. She spent three days in the hospital and had an operation
to put a pin in her leg. Afterwards, she spent four weeks in physical
therapy. Since Mandy did not have insurance, Marilyn gave her $32,000
to cover her medical expenses.
|
Jasmine recently
emigrated to the U.S. from Canada to marry her boyfriend, Thomas. They
went to Hawaii for their honeymoon. During one of their shopping trips
at a local boutique, Thomas bought Jasmine a diamond and ruby pendant
for $150,000. The pendant is a taxable gift.
|
Jordan and
his wife, Antoinette, recently had their first child. To celebrate the
occasion, Jordan bought his wife a brand new Volvo ($35,000) to replace
their old station wagon. In addition, he bought her a diamond engagement
ring for $350,000. When they married six years ago, he could not afford
to buy her a substantial ring. They were high school sweethearts and still
live in Orlando, where they were both born and raised. Which of the following
is correct?
|
Scott gave
$12,000 to his alma mater for a special scholarship drive. In addition,
during 2003, he gave $15,000 to his church. Lastly, he gave $5,000 to
a local homeless shelter.
|
© 2003 - 2024 National Paralegal College