Prepare a 2016 gift tax return for natalie

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Question:

Natalie Bryan, a widow who lives at 425 Flathead Way, Kalispell, Montana 59901, has three adult children (Daniel Bryan, Amanda Green, and Samantha Cruz). During 2013, Natalie makes the following gifts to the children.

To Daniel. Office building in Helena acquired in 2001 at a cost of $900,000, current value $1.9 million.

To Amanda. Rental cabins in Whitefish inherited in 1999 (value $1,000,000) from her father, current value $1.8 million.

To Samantha. Vacation lodge on Flathead Lake acquired in 1995 at a cost of $800,000, current value $1.9 million.

Prepare a 2016 gift tax return (Form 709) for Natalie (Social Security number 123-45-6787). to compute the total taxable gifts (line 3) for her; stop with line 3 of page 1 but complete pages 2 and 3 of the return. Natalie made no taxable gifts in prior years.

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In the given assignment Form 709 is prepared for Natalia for calculation of Taxable gifts for the year 2016. Natalia had made gifts to her three children. Office building which she had purchased in 2001 was given to Daniel, the rental cabins that were inherited were given to Amanda and the Vacation Lodge was given to Samantha. The annual exclusion that can be claimed by Natalia is $ 14000 for 2016.The taxable gifts as calculated using the form 709 is 5586000 since as per the instructions the value of the gifts as on date will be taken.

Reference no: EM131749124

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