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Joined: 10 Jun 2008
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Posted: 07 Jul 2008 at 22:06 | IP Logged Quote youneedmentos

Steve and Kay Briar, U.S. citizens, were married for the entire calendar year.  During the year, Steve gave a $30,000 cash gift to his sister.  The Briars made no other gifts in the year.  They each signed a timely election to treat the $30,000 gift as made one-half by each spouse.  Disregarding the unified credit and estate tax consequences, what amount of the current year gift is taxable to the Briars?

The answer is $6000, $3000 taxable to each. Why isn't the answer 0 because with a contribution of 1/2 by each, isn't the exclusion $24,000 per person as said in Becker pg 28 of R4??
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Joined: 05 Jun 2008
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Posted: 07 Jul 2008 at 22:14 | IP Logged Quote iwuvaccounting

No...exclusion is $12,000 per person per gift...$24,000 married.


($24,000 exclusion)

=$6,000 taxable

/ 2 = $3,000 per person.

Edited by iwuvaccounting on 07 Jul 2008 at 22:15
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