Solution: Transfer of $14,400 to a Coverdell ESA from John, age 30 to his brother Jerry age
Explanation: The taxpayer in 2018 and 2019 are allowed to give $15,000 to each recipient for a sum of $150,000. The balances in a Coverdell ESA need to be disbursed on qualified education expenses by the time the beneficiary attains the age of 30 years or given to another member of family who is below the age of 30 years for the avoidance of penalties and taxes. The exclusion of annual gift is available to each taxpayer; thus transfer of total $14,400 to a Coverdell ESA from John (who is 30 year old) to his brother Jerry (who is 22 year old) is eligible as a taxable gift for purposes of gift tax.
Question 63 of 75. Which of the following is a taxable gift for gift tax purposes?...
Question 36 of 75 Which of the following gifts is a gift to a skip person? O John (75) gives $100,000 grandson, J O Carol (age 50) gives $75,000 to her niece, Sally (age 10). OJan (age 65) gives $25,000 to her friend, Bill (age 45). to his grandson, Joseph (30), Joseph's mother (John's daughter) is not living at the time of the giht. Bob (age 50) makes a $50,000 gift to his godson, David (age 11).