Sly is a widower and wants to make annual gifts of cash to each of his four children and six grandchildren.Required:a. How much can Sly transfer to his children this year if he makes the maximum gifts eligible for the annual exclusion?b. What is the amount of the total transfer if Sly is married and elects gift-splitting, assuming his spouse makes no other gifts?a. Amount transferableb. Amount transferable

Answered: Sly is a widower and wants to make…

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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Sly is a widower and wants to make annual gifts of cash to each of his four children and six grandchildren.
Required:
a. How much can Sly transfer to his children this year if he makes the maximum gifts eligible for the annual exclusion?
b. What is the amount of the total transfer if Sly is married and elects gift-splitting, assuming his spouse makes no other gifts?
a. Amount transferable
b. Amount transferable

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Step 1 Introduction

Individuals may make gifts of cash and property worth up to $15,000 per donee in 2021 without incurring gift tax obligations; however, donations of future interests are not eligible for this yearly gift tax exclusion. This exclusion may be applied to as many donees as the donor desires.

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