Ma 1. Amanda is in her 70s, is in good health, and lives in a large house in a rural area. Amanda asks Bridget, the granddaughter of a close friend, to live in the house with her. Amanda does not need nursing care, but wants someone for companionship and to help with housework and repairs. Amanda promises to transfer the house to Bridget if she will live with her for five years. Bridget does so and continues to work full-time in a nearby town. Amanda transfers title in the house to Bridget. What are the gift tax consequences, if any, to Amanda?
Ma 1. Amanda is in her 70s, is in good health, and lives in a large house in a rural area. Amanda asks Bridget, the granddaughter of a close friend, to live in the house with her. Amanda does not need nursing care, but wants someone for companionship and to help with housework and repairs. Amanda promises to transfer the house to Bridget if she will live with her for five years. Bridget does so and continues to work full-time in a nearby town. Amanda transfers title in the house to Bridget. What are the gift tax consequences, if any, to Amanda?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ma 1.
Amanda is in her 70s, is in good health, and lives in a large house in a rural
area. Amanda asks Bridget, the granddaughter of a close friend, to live in the
house with her. Amanda does not need nursing care, but wants someone for
companionship and to help with housework and repairs. Amanda promises to
transfer the house to Bridget if she will live with her for five years. Bridget
does so and continues to work full-time in a nearby town. Amanda transfers title
in the house to Bridget. What are the gift tax consequences, if any, to Amanda?
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