Carl made the following transfers during the current year. Transferred $900,000 in cash and securities to a

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Carl made the following transfers during the current year.

  • Transferred $900,000 in cash and securities to a revocable trust, life estate to him- self and remainder interest to his three adult children by a former wife.
  • In consideration of their upcoming marriage, gave Lindsey (age 21) a $90,000 convertible.
  • Purchased a $100,000 certificate of deposit listing title as “Carl, payable on proof of death to Lindsey.”
  • Established a joint checking account with his wife, Lindsey, in December of the current year with $30,000 of funds he inherited from his parents. In January of the following year, Lindsey withdrew $15,000 of the funds.
  • Purchased for $80,000 a paid-up insurance policy on his life (maturity value of $500,000). Carl designated Lindsey as the beneficiary.
  • Paid $13,400 to a college for his niece’s tuition and $6,000 for her room and board. The niece is not Carl’s dependent.
  • Gave his aunt $52,000 for her heart bypass operation. The aunt is not Carl’s dependent.

What are Carl’s taxable gifts for the current year?

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Related Book For  answer-question

South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

ISBN: 9781305399884

39th Edition

Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young

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