Reference no: EM131288041

Determine the taxable gift in each of the following unrelated scenarios:

1. Abram is single and gives $35,000 to each one of his eight grandchildren.

2. Jacob is married and gives $35,000 to each one of his eight grandchildren. He and his wife gift split.

3. In January, Curt sells YTM stock (FMV = $30,000) to Martina for $20,000.

4. David sells a $500,000 real estate property to Joe for $100,000.

5. In the ordinary course of business, Joe sells a diamond ring valued at $30,000 for $15,000 to a customer named Donna.

Determine the items exempt from gift tax that were paid by Yancey:

1. College expenses for his son paid directly to the institution

1. Tuition = $20,000

2. Room and Board = $10,000

2. Transfer to Throw Them All Out political party = $3,000

3. College expenses for his daughter paid directly to her

1. Tuition = $35,000

2. Room and Board = $10,000

4. Medical expenses for his son = $20,000

5. Medical expenses for his son’s friend Sergio = $5,000

Determine the annual exclusion in each of the following unrelated scenarios:

1. Craig gives $14,000 in cash to each of his 10 children.

2. John gives $20,000 in cash to each of his 10 children.

3. Jay establishes a $1,000,000 insurance policy that will be paid equally to his 10 children upon his death.

4. Terrence has a $500,000 piece of real estate property in an irrevocable trust that will pay income to his 10 children at the discretion of the rustee.