M made the following cash gifts during 2016: To her son - $50,000. To her daughter...

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M made the following cash gifts during 2016: To her son - $50,000. To her daughter...

M made the following cash gifts during 2016: To her son - $50,000. To her daughter - $50,000 and to her niece - $10,000.

If M is unmarried, what is the amount of taxable gifts she has made in 2016?
If M is married and her husband agrees to split gifts with her, what is the total amount of taxable gifts made by M and her husband for 2016?

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Answer 1

Answer #1

Answer a:

In 2016, the got amount tax payer can give per person per year without being taxed on gift is $14,000.

If married, spouses agree to split the gifts then they can give $28,000 per person per year without being taxed on the gift.

If M is unmarried, taxable gift during 2016 will be = $72,000

Workings:

Gift To her son Gift amount Exclusion Taxable Gift $50,000$14,000 $36,000 To her daughter$50,000 $14,000 $36,000 $0 $72,000 To her niece $10,000 $10,000 Total taxable gift

Answer b:

If M is married and her husband agrees to split gifts with her, the total amount of taxable gifts made by M and her husband for 2016 = $44,000

Workings:

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Answer 2

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M made the following cash gifts during 2016: To her son - $50,000. To her daughter...

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