Question

1. Darren has 3 children and 6 grandchildren. His wife, Diana, is his second wife and both of her parents are elderly.  During the year, Darren and Diana made the following gifts:

Donor	Gift	Value	Donee(s)
Darren	Condo	$1,000,000	Darren’s three kids
Darren	Lake house	$200,000	Darren’s six grandkids
Darren	Cash	$50,000	Darren’s oldest kid
Darren	Cash	$50,000	Darren’s middle kid
Darren	Cash	$50,000	Darren’s youngest kid
Darren	Cash to 529 Plan	$450,000	Six grandkids
Diana	Cash to 529 Plan	$450,000	Six grandkids
Diana	Cash	$200,000	Diana's mom
Diana	Cash	$200,000	Diana's dad

            Assume that all gifts are split. What is the total of Diana’s taxable gifts for the year?

Answer 1

since all gifts are spilt they can claim gift tax annual exclusion beneift of $30000 per year and also life time exclusion benefit of $23160000

TAXABLE GIFT
BY
BY DARREN	3 KIDS	CONDO	$1,000,000.00
	6 grand kids	LAKEHOUSE	$200,000.00
	oldest kid	cash	$50,000.00
	middle kid	cash	$50,000.00
	youngest kid	cash	$50,000.00
	6 Grand kids	cash	$450,000.00
DIANA
	6 GRAND KIDS	$450,000.00
	DIANA MOM		$200,000.00
	DIANAS DAD		$200,000.00
TOTAL GIFT		A	$2,650,000.00
ANNUAL TAX EXCULSION 2020	B $	30000
TAXABLE GIFT		A-B=D	$2,620,000.00
LIFE TIME EXCULSION	C $	23160000
LIFE T IME EXCULSION LEFT FOR BOTH(C-D)	$20,540,000.00
TOTAL TAX DUE IS NIL	although taxable gift is $850000