Jinn and Liin are married and live in a common law state. They want to make gifts to their four children in 2021. What is the maximum amount of the annual exclusion they will be allowed for these gifts? a.$30,000. b.$120,000. c.$60,000. d.$15,000.
Jinn and Liin are married and live in a common law state. They want to make gifts to their four children in 2021. What is the maximum amount of the annual exclusion they will be allowed for these gifts? a.$30,000. b.$120,000. c.$60,000. d.$15,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jinn and Liin are married and live in a common law state. They want to make gifts to their four children in 2021. What is the maximum amount of the annual exclusion they will be allowed for these gifts?
a.$30,000.
b.$120,000.
c.$60,000.
d.$15,000.
Expert Solution
Step 1
Solution
Jinn and Liin are married and live in a common law state. They want to make gifts to their four children in 2021. What is the maximum amount of the annual exclusion they will be allowed for these gifts?
Correct answer is option c . $60,000
The gift made to the children is allowed for annual exclusion.
The exclusion that applies from year 2018 till year 2021 is $15000 gif made to each children
Jinn and Linn wants to make gifts to their four children in 2021
The exclusion applicable for 2021 is $15000 per children
Hence maximum amount of annual exclusion they will be allowed for these gifts
=$15000 * 4
=$60,000
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