In 2013, Homer and his wife, Wilma (residents of a non-community property state) make the gifts listed below. Homer's previous taxable gifts consist of $100,000 made in 1975 and $1.4 million made in 1996. Wilma has made no previous taxable gifts.
Wilma's current year gifts were
to Art ............................................ $400,000
to Bart ........................................... 6,000
Homer's current year gifts were
to Linda .......................................... $600,000
to a charitable organization ................... 100,000
to Norma (future interest) ...................... 200,000
a. What are the gift tax liabilities of Homer and Wilma for 2013 if they elect gift splitting and everyone except Norma receives a present interest?
b. How would the gift tax liabilities for each spouse in Part a change if they do not elect gift splitting?