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
icon
Related questions
Question
100%
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?
Transcribed Image Text: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?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Sales and Other Dispositions of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education