In the current year, Marah gives $20,000 cash to Sam, $60,000 of stock to Craig, and $100,000 of bonds to Lynn. In the same year, Marah’s husband, Bryan, gives $120,000 of land to Jerry.
a. What are Marah and Bryan’s taxable gifts if they do not elect gift splitting?
b. What are the couple’s taxable gifts assuming the couple elects gift splitting?
Expert Answer
Annual exclusion is $13,000.
a. If gift splitting is not elected Marah’s and Bryan’s taxable gift will be calculated as follows:
Marah’s taxable gift
= (Gift to Sam – $13,000) + (Gift to Craig – $13,000) + (Gift to Lynn
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