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Using Property, she inherited, Myrna makes a cash gift of $16.2 million to her adult daughter...

Using Property, she inherited, Myrna makes a cash gift of $16.2 million to her adult daughter in 2020. Neither Myrna nor her husband, Greg, has made any prior taxable gifts. They do not live in a community property state. Determine the Federal gift tax liability if:

1.    The election to split gifts is not made (5 points)

2.    The election to split gifts is made. (5 points)

3. What are the tax savings from making the election? (5 points)

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Answer #1

58 59 60 1 Case not to split gift 61 62 63 DETAILS AMOUNT GIFTED annual exemption $ 15000 Less - $ 1,62,00,000 - 15000 1,61,848 2 Case to split gift 49 50 51 DETAILS AMOUNT GIFTED LESS ANNUAL DEDUCTION 52 $15000*2 $ 16200000 -30,000 1,61,70,000 -2,281 3 Hence if they decide to split the the gift the tax saving shall be of $ 4785000 hence this election is best. 2 3 4 NOTE -

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