Hypothetical: 35 months ago, in March of 2019, yourclient gave his daughter Debbie his shares of Amazonstock valued that day at $35,000. It was the only giftFred made in 2019. The lifetime applicable exclusionamount in 2019 was $11,400,000 and Fred had alreadyused it all up by giving away more than $13 milliondollars prior to 2019. In 2019, the gift tax rate was40%, the annual exclusion in 2019 was $15,000, not$16,000. He properly reported the gift using a Form709 in 2019.4. What was the amount of the taxable gift Fred madein 2019?5. What amount, if any, will be attributed to thistransaction by Fred's personal representative onFred's 706?

Fred already utilised the exclusion amount of $ 1140000 as per given…

Answered: ago, your client gave his daughter…

Business

Accounting

ago, your client gave his daughter Debbie his shares of Amazon stock valued that day at $35,000. It was the only gift

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Hypothetical: 35 months ago, in March of 2019, your
client gave his daughter Debbie his shares of Amazon
stock valued that day at $35,000. It was the only gift
Fred made in 2019. The lifetime applicable exclusion
amount in 2019 was $11,400,000 and Fred had already
used it all up by giving away more than $13 million
dollars prior to 2019. In 2019, the gift tax rate was
40%, the annual exclusion in 2019 was $15,000, not
$16,000. He properly reported the gift using a Form
709 in 2019.
4. What was the amount of the taxable gift Fred made
in 2019?
5. What amount, if any, will be attributed to this
transaction by Fred's personal representative on
Fred's 706?

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